- Closes fully subscribed C$20 million non-brokered private placement
- Due to excess demand, announces C$6 million brokered private placement
- Proceeds to be used to continue a 2017/18 accelerated exploration program on its lithium assets in Argentina
/NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES/
TORONTO, Oct. 30, 2017 /CNW/ - LSC Lithium Corporation ("LSC" or together with its subsidiaries, the "Corporation") (TSXV:LSC) is pleased to announce that it has closed the final tranche of its previously announced C$20 million non-brokered private placement of common shares (the "Offering"). The Offering was fully subscribed and the Corporation has issued a total of 18,181,817 common shares for aggregate gross proceeds of C$20,000,000.
The final tranche of the Offering consisted of 3,150,467 common shares for aggregate gross proceeds of approximately C$3.5 million. The common shares were issued on October 27, 2017 and are subject to resale restrictions under Canadian securities laws which will expire on February 28, 2018. Finder's fee totaling C$871,480 was paid in connection with the Offering.
The Corporation is also pleased to announce that due to excess demand, it has engaged GMP Securities L.P. ("Agent") to act as Lead Agent with respect to a proposed best efforts private placement of units of the Corporation (the "Units"), at a price of C$1.25 per Unit, representing total gross proceeds of C$6,000,000 (the "Brokered Offering"). Each Unit consists of one common share of the Corporation and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one common share of the Corporation at a price of C$1.55 for a period of 36 months following the closing of the Brokered Offering. The Warrants will have an acceleration provision such that if, at any time after the first six months following the closing of the Brokered Offering, the volume-weighted average daily trading price of the Corporation's common shares on the TSX-Venture Exchange is C$2.25 or more for 10 consecutive trading days, then the Corporation may, anytime thereafter, accelerate the expiry date of the Warrants to the date that is 20 days following the date the Corporation provides notice to warrant holders of the new expiry date.
The net proceeds of the Brokered Offering will allow LSC to further continue its expanded exploration program for 2017 and 2018 on its lithium assets in Argentina. The Corporation expects the closing of the Brokered Offering to occur on or about November 9, 2017, or some other date that the Corporation and the Agent mutually agree upon.
The Agent will be paid a broker's fee equal to 6% of the gross proceeds of the Brokered Offering and receive broker's warrants equal to 6% of the number of Units sold pursuant to the Brokered Offering as compensation for acting as the broker in connection with the Brokered Offering.
The Units will be offered for sale by way of private placement pursuant to applicable exemptions from the prospectus requirements in all of the Provinces of Canada. The Agent will also be entitled to offer the Units for sale in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended, and in those other jurisdictions outside of Canada and the United States provided no prospectus filing or comparable obligation arises in such other jurisdiction. The Units sold pursuant to the Brokered Offering will be subject to a 4 month hold period under applicable securities laws.
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 regarding the Brokered Offering and its completion. 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, including risks related to completion of the Brokered Offering, the use of proceeds of the Brokered Offering, expected timing of closing the Brokered Offering and the approval of the regulatory authorities. 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 Corporation'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, Ian Stalker, President & Chief Executive Officer, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: [email protected], Web: lsclithium.com