08:31:09 EDT Mon 03 Oct 2022
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or Name

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Lithium Chile Inc
Symbol LITH
Shares Issued 139,462,359
Close 2021-10-25 C$ 0.58
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Lithium Chile arranges $2.5-million private placement

2021-10-25 12:13 ET - News Release

Mr. Steven Cochrane reports


Lithium Chile Inc. has arranged a non-brokered private placement of up to 4,166,667 units of the company at a price of 60 cents per unit for aggregate gross proceeds of up to $2.5-million, after receiving sizable unsolicited interest from investors based in Europe. There is no minimum offering. Each unit will comprise one common share of the company and one common share purchase warrant. Each warrant shall be exercisable at 75 cents per common share for a period of 24 months from the closing date of the offering. Lithium Chile may pay a cash commission or a finder's fee to qualified non-related parties of up to 5 per cent of the gross proceeds of the offering. The proceeds of the offering will be used for working capital and to pay the expenses of the offering.

The offering is being offered to all of the existing shareholders of the company who are permitted to subscribe pursuant to the existing shareholder exemption. The company anticipates that the offering will close on or around Nov. 5, 2021. Any existing shareholders interested in participating in the offering should contact the company.

The company has set Oct. 20, 2021, as the record date for determining existing shareholders entitled to subscribe for units pursuant to the existing shareholder exemption. Subscribers purchasing units under the existing shareholder exemption will need to represent in writing that they meet certain requirements of the existing shareholder exemption, including that they were, on or before the record date, a shareholder of the company and continue to be a shareholder as at the closing date. The aggregate acquisition cost to a subscriber under the existing shareholder exemption cannot exceed $15,000 in a 12-month period, unless that subscriber has obtained advice regarding the suitability of the investment and, if the subscriber is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction.

As the company is also relying on the exemption for sales to purchasers advised by investment dealers, it confirms that there is no material fact or material change about the company that has not been generally disclosed. In addition to offering the units pursuant to the existing shareholder exemption and the exemption for sales to purchasers advised by investment dealers, the units are also being offered pursuant to other available prospectus exemptions, including sales to accredited investors. Unless the company determines to increase the gross proceeds of the offering, if subscriptions received for the offering based on all available exemptions exceed the maximum offering amount of $2.5-million, units will be allocated on a first-come-first-served basis.

The completion of the offering is subject to regulatory approval, including, but not limited to, the approval of the TSX Venture Exchange. The common shares and warrants to be issued under the offering will be subject to a four-month hold period from the closing date of the offering.

About Lithium Chile Inc.

Lithium Chile is advancing a lithium property portfolio consisting of 68,000 hectares covering sections on 10 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.

Lithium Chile also owns five properties, totaling 22,429 hectares, that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile's Carmona gold/silver/copper property, which lies in the heart of the Chilean megaporphyry gold/silver/copper belt.

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