Vancouver, B.C., July 12, 2012– Ultra Lithium Inc. (TSX-V: ULI) (“the Company” or “Ultra”) is pleased to announce that it has closed the first tranche of its previously announced private placement with Beijing Guofang Mining Investment Co., Ltd., (“BGMI”). The Company issued 10,000,000 units to BGMI at a price of
.05 per unit for gross proceeds of $500,000.00. Each unit consists of one common share of the Company and one common share purchase warrant (“Warrant”), with each warrant entitling BGMI to acquire one additional common share of the Company at
.10 per share at any time until July 9, 2014. The securities issued under the private placement are subject to a four month hold period expiring November 10, 2012.
In the second tranche, BGMI and associates will subscribe an additional 10,000,000 Units at a price of
.05 per unit for gross proceeds of $500,000.00. Upon completion of the second tranche, BGMI will become an insider of the Company and will hold 10.47% of the issued and outstanding common shares of the Company on an undiluted basis, and up to 17.84% of the common shares of a fully diluted basis.
A finder’s fee of $40,000 is payable on this tranche of the private placement.
On April 18, 2012, the Company and BGMI entered into a Framework Agreement pursuant to which BGMI and its associates agreed to invest $1,000,000 in units of the Company. BGMI also agreed to fund up to CAD$3,500,000 of approved exploration expenditures on the Company’s Balkans Property in the Republic of Serbia, to be incurred within a period of three (3) years. BGMI will earn a five (5%) per cent equity interest for each CAD$500,000 of approved expenditures incurred and up to a thirty five (35%) per cent equity interest once the entire CAD$3,500,000 of qualified expenditures has been incurred. The Company and BGMI continue to explore the Balkans Property in a joint venture.
On behalf of the Board of Directors
ULTRA LITHIUM INC.
President & CEO