All dollar amounts are in U.S. dollars unless otherwise indicated.
TORONTO, July 28, 2017 /CNW/ - LSC Lithium Corporation ("LSC" or together with its subsidiaries, the "Company") (TSXV:LSC) is pleased to announce that it has engaged GMP Securities L.P. ("GMP") to act as broker with respect to a proposed "commercially reasonable best efforts" private placement of up to CAD $20 million of common shares (the "Offering"). Pricing for the Offering will be determined in the context of the market.
LSC is undertaking the Offering in order to fund an accelerated and expanded exploration program on its portfolio of high-quality lithium brine projects in Northern Argentina and to increase the cash position of LSC following the payment of the aggregate principal amount of $14,275,816 (plus all accrued interest thereon) by LSC to its secured lenders who did not exercise their conversion rights in connection with the LitheA Inc. acquisition announced in the Company's June 30, 2017 press release.
The funds raised in the Offering will allow LSC to further pursue the promising exploration results to date by the implementation of an accelerated and expanded exploration program for 2017. LSC has currently initiated a major exploration program on its Salar de Pozuelos property ("Pozuelos"), following up on the success of its initial exploration (see LSC press release dated April 10, 2017).
As announced on July 25th, the current program incorporates 15 holes to test all depths of Pozuelos and collect brine and Relative Brine Release Capacity (RBRC) samples. Drilling for the current program commenced the week of July 14th in the south end of Pozuelos and the Company awaits assays and other test results. LSC is encouraged by the drilling results to date, which indicate the potential for high porosity formations.
A drilling program on LSC's tenements on nearby Salar Pastos Grandes is scheduled to start as soon as permits are received, which are expected by the beginning of August. This program will complement the work on Pozuelos. Other exploration programs are scheduled to start in early August on LSC's projects at Salar Rio Grande and Salar Jama. In addition, LSC anticipates receiving permits to undertake initial exploration work on its Salar Salinas Grandes tenements in Salta Province in late Q3/17.
GMP will be paid a broker's fee equal to 6% of the gross proceeds of the Offering and receive broker's warrants equal to 6% of the number of common shares sold pursuant to the Offering in compensation for acting as the broker in connection with the Offering.
The common shares sold pursuant to the Offering will be subject to a 4 month hold period under applicable securities laws.
To better organise LSC activities to focus on exploration, the delivery of resource reports in conformance with NI 43-101 standards, and to proceed to a feasibility stage at Pozuelos, Pastos Grandes, Rio Grande, Jama and Salinas Grandes LSC is relocating to its own independent premises in Salta, Argentina and intends to staff up to a work force of approximately 28 persons in order to simultaneously carry out exploration in multiple areas.
The physical separation is intended to not only focus LSC's activities on its exploration objectives but to free up Enirgi Group Corporation and its subsidiary, ADY Resources Limited, Sucursal Argentina, to advance its demonstration lithium carbonate processing plant at Salar del Rincón to a productive level of output while at the same time focus on financing and building its full scale production facility.
Qualified Person/Data Verification
The scientific and technical information included in this press release is based upon information prepared and approved by Donald H. Hains, P.Geo. Donald H. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC and LitheA.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its tenements located in five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes and Jama. All LSC tenements are located in the "Lithium Triangle," an area at the intersection of Argentina, Bolivia, and Chile where the world's most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the following: the Offering and its completion, LSC's intentions regarding an exploration program for the Pozuelos Property and the timing and ability to advance the Pozuelos Property to feasibility study level. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to completion and pricing of the Offering, the operations changes described in this press release, exploration and the establishment of resources and reserves on the Pozuelos Property or other LSC properties; the application and future licensing of new technologies; the risks around timing, permitting, funding and construction of a regional processing facility at the Salar del Rincón by Enirgi Group and the ability of LSC to fast-track production from its own properties by supplying brine to such a facility; risks relating to proposed acquisitions; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC's share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information see the Company's filing statement on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
SOURCE LSC Lithium Corporation
For further information: LSC Lithium Corporation, Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: firstname.lastname@example.org, Web: lsclithium.com