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Standard Lithium to acquire claims in Utah, raise $5M

2016-12-02 09:06 ET - News Release

Mr. Gavin Cooper reports

STANDARD LITHIUM LTD. ENTERS INTO LOI TO ACQUIRE MOAB MINERALS CORP.

Standard Lithium Ltd. has entered into a letter of intent dated Dec. 1, 2016, with Moab Minerals Corp., a private B.C. company. Pursuant to the letter of intent, the company will acquire the issued and outstanding common shares of Moab on a share-exchange basis, the terms of which have not been determined. Moab's assets are its interests in certain mining claims located in Utah and liabilities that are the corresponding obligations in regard to the claims. The claims are more particularly described as up to 3,000 claims in San Juan county, Utah, that are prospective for lithium. Any acquisition of Moab and/or the claims pursuant to the letter of intent is subject to numerous conditions precedent, including but not limited to, the negotiation and completion of a definitive agreement, the completion of satisfactory due diligence in regard to the claims, the receipt of all required approvals, and more specifically, the approval of the TSX Venture Exchange.

In addition, the company has arranged a proposed private placement of common shares for gross proceeds of up to $5-million at a price of 25 cents per share. Net proceeds from the private placement will be used for the identification and evaluation of potential lithium asset opportunities in North America, for possible staking of claims if warranted, for an expanded work program on the Mojave property, as well as for general working capital.

Completion of the private placement is subject to TSX-V acceptance, and shares issued will be subject to a four-month hold period.

We seek Safe Harbor.

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