Ultra Lithium Inc revealed that Zangge Mining Investment (Chengdu) Company Limited has received an order from the Government of Canada to divest its interest in Ultra Lithium.
The Vancouver, British Columbia-based junior exploration company and Zangge have also mutually agreed to terminate the definitive agreement with respect to the Laguna Verde property announced on June 20, 2022.
Ultra Lithium said that the company’s board and management are “very surprised at Canada’s policy against Chinese investment in Canada’s lithium projects” and believe that the announcement has been “detrimental to the company’s many Canadian shareholders.”
READ: Ultra Lithium updates on drill progress at Forgan Lake and Georgia Lake properties
The company said it is assessing its legal and other options to preserve value for its shareholders.
Meanwhile, Ultra Lithium said it fully supports Canada’s push toward clean energy and has been committed to lithium and green energy since 2009. As a junior exploration company, Ultra Lithium and many of its peers will require significant capital to bring their projects to production and build Canada’s critical minerals supply chain.
Ultra Lithium asked the federal government to follow through on its commitment to Canadian businesses to identify and find alternative sources of capital and to retain Canada’s status as a stable, top-tier mining destination.
The Canadian company holds a brine lithium property in Argentina, hard rock spodumene type lithium properties at the Georgia Lake /Forgan Lake area in northwestern Ontario, Canada, and a brine lithium property in the Big Smoky Valley in Nevada. Ultra Lithium also holds other gold and base metals properties in Argentina.
Ultra Lithium said it is proceeding with planned work programs at its properties in northern Ontario and Argentina and provided the following update:
Forgan Lake and Georgia Lake drilling program completed
- Completed approximately 7,000 meters (m) of drilling. Many intersects show visible spodumene;
- Cut cores have been shipped for assay;
- Commenced soils sampling to identify additional pegmatites at Georgia Lake and Forgan Lake;
- Samples for metallurgical test work have been collected;
- Compiling data and information for preparing NI 43-101 report and resource estimates upon receipt of assay results and other planned work;
- Continuing to strengthen local First Nations relationships.
Laguna Verde drilling program in progress
- Cleaning the previous drill holes area to recommence the drilling program;
- Geophysical measurements on the previous drill holes showed encouraging lithium values in the Salar.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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