VANCOUVER - New World Resource Corp (TSX:NW) says it intends to exchange its lithium assets for a significant equity stake in Li3 Energy Inc. (OTCBB:LIEG), a development-stage company that intends to list its shares in Canada.
Under a letter of intent announced Wednesday, New World and Li3 have agreed to a 45-day period for exclusive negotiations of a definitive agreement on the proposed deal.
In return for 22.5 per cent of Li3's common shares, New World would transfer its interest in the Pastos Grandes lithium brine project in Bolivia and its 19 per cent stake in Perfect Lithium Corp., a company set up to research and develop lithium powders used to make batteries.
Lithium is a rare element with a number of uses, including to make rechargeable batteries suitable for electric vehicles.
Li3 is an exploration and development company that aims to acquire a portfolio of lithium brine deposits in the Americas, in partnership with a South Korean steel producer.
One of the conditions of the deal with New World is that Li3 receive approval to list its shares on the TSX Venture Exchange.
New World shares traded Wednesday at 26 cents, up two cents or nearly nine per cent, on the TSX Venture Exchange. Li3 shares are listed on the Over-the-Counter Bulletin Board. They traded Wednesday at 7.8 cents US.
