First Liberty Power Corp, a Nevada based mineral exploration company, announced today that it has entered into an agreement to sell its Uravan vanadium and uranium claim to a non related party, New America Energy Corp.
The purchase price is $110,000 payable in installments over one year with a $10,000 down-payment upon execution, together with the issuance of 500,000 shares of the common stock of New America and a 0.5 percent NSR (net smelter royalty). Should the terms of the agreement not be fulfilled, the option to the property will revert back to First Liberty.
"While we remain convinced of the strong merits of the Uravan property in Utah, we determined that it was in the best interest of the company and its shareholders to focus all of our financial and time resources on the exploration and development of our lithium prospects, particularly given the recent entry into an LOI for an additional property,” said Don Nicholson, President and CEO of First Liberty Power.
“The transaction is very positive for First Liberty, and will result in a full recouping of its investments to date in Uravan, with the added benefit of the upside potential of the common stock and the NSR. We intend to use the proceeds from the sale towards the ongoing requirements related to the exploration and development of the lithium properties.”
First Liberty Power Corp. is positioning itself to capitalize on the expected increase in demand for lithium carbonate from the acceleration of the adoption and use of renewable energy products that use lithium ion batteries.
Lithium ion batteries were first proposed in the 1970s and commercially developed in the 1990s. Since then, the market has grown to $11 billion and is expected to reach $43 billion by 2020 with the growth in new applications including electric vehicles and electrical storage systems.
