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Anti-China lithium policy detrimental to Canadian shareholders, says Ultra Lithium

Ultra Lithium and Zangge Mining Investment will terminate a definitive agreement with respect to the Laguna Verde property, in Argentina.

Ultra Lithium and Zangge Mining Investment will terminate a definitive agreement with respect to the Laguna Verde property, in Argentina.

4th November 2022

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Vancouver-headquartered explorer Ultra Lithium on Friday expressed its surprise at Canada’s policy against Chinese investment in the country’s lithium projects and said that it was assessing its legal options to preserve value for its shareholders.

This comes as the Canadian government earlier this week ordered Zangge Mining Investment (Chengdu) and two other Chinese firms to divest their interests in Canadian critical mineral companies.

Zangge must exit its investment in Ultra Lithium. The companies on Friday confirmed that they would terminate a definitive agreement with respect to the Laguna Verde property, in Argentina.

Ultra Lithium and Zangge in June announced a definitive agreement for the development of Laguna Verde, entailing payments of $10-million by Zangge and an investment of $40-million in the project for a 65% stake in Ultra Argentina.

“The board of directors and management of the company 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,” said Ultra Lithium.

The TSX-V-listed company stated that it was in full support of Canada’s push toward clean energy and had been committed to lithium and green energy since 2009, but noted that as a junior exploration company, it would require significant capital to bring projects to production.

“Ultra Lithium encourages the federal government to actively 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 and top tier mining destination,” it said in a statement.

Ultra Lithium is proceeding with planned work programmes at its properties in Northern Ontario and Argentina.

Edited by Creamer Media Reporter

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