Ultra Lithium Inc. (ULI) (TSX-V:ULI) signed a non-binding letter of intent October 28 for a joint venture with China-based CCG Mining Inc. for a joint venture to explore and develop ULI's South Big Smoky Valley claims in Nevada.
The agreement will see CCG committing to fund up to $2 million in the property to acquire an up to 35% equity interest in the joint venture over a period of three years.
CCG will earn equity interest of 10% on a $500,000 investment in the first year, another 10% for the same amount in the second year and a further 15% interest on $1,000,000 in year three.
The agreement will see ULI owning 65% of the joint venture and CCG owning 35%.
"We are delighted to work with our new partners CCG to explore and develop the South Big Smoky Valley property," said ULI CEO Marc Morin.
The 13,280-acre property is located in Esmeralda County in Nevada.
The definitive agreement is expected to be signed by March 16, 2014, pending all necessary third party and regulatory approvals.
CCG Mining, a subsidiary of CCG Group with over 1,000 geologists and support staff, is a state-owned entity that prospects and explores mineral deposits in China and around the world.
