VANCOUVER - Lithium Lion Metals Inc. (CSE: LLM) (OTC: GLIOF) (FWB: 2BC), a mineral exploration company, announced today that it has entered into a binding Letter of Intent (LOI) with Tubutulik Mining Company LLC for the Boulder Creek Property. The LOI grants Lithium Lion an exclusive 10-year option to acquire a 100% ownership interest in the property.
The financial terms of the deal include an initial payment of $5,000 upon signing the LOI, followed by $25,000 upon entering a definitive agreement. Subsequent payments of $50,000 and $100,000 are due on the first and second to tenth anniversaries of the definitive agreement, respectively. Lithium Lion has the discretion to accelerate these payments at any time.
In addition to the option payments, the agreement stipulates that Lithium Lion will grant Tubutulik Mining a 2.0% net smelter royalty (NSR) on the property, with an option for Lithium Lion to buy back 1.00% of the NSR for $1 million. If the buyback is exercised, the company will make annual advance royalty payments of $100,000 for ten years following the tenth anniversary of the definitive agreement.
A finder's fee of 7.00% per option payment is payable to Robert Weicker as part of the agreement terms.
Lithium Lion is currently conducting technical due diligence on the Boulder Creek Property and expects to enter into the definitive agreement within 60 days, contingent upon satisfactory due diligence results.
The company, which is also involved in exploring the 13N Project in Quebec, will provide updates to shareholders and the public regarding further developments.
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