Mr. Steven Cochrane reports
LITHIUM CHILE ANNOUNCES CHENGXIN LITHIUM HAS EXERCISED THEIR WARRANTS FOR NET PROCEEDS OF $3,642,862 AS PART OF THEIR STRATEGY TO INCREASE ITS TOTAL SHAREHOLDING TO 19.86%
Lithium Chile Inc. has received $3,642,862 net proceeds from Chengxin Lithium Group as part of its strategy to increase ownership in Lithium Chile to a total of 19.86 per cent. The funds received from warrants exercised at 85 cents will be added to the company's working capital to bring the total current cash balance to $15,633,086. The additional balance of $27,911,000 in connection to the private placement recently announced has already been received from Chengxin and is currently in trust until the private placement officially closes. The capital will be used to advance the company's Arizaro project in Argentina as well as the company's priority projects in Chile.
Steve Cochrane, president, comments: "I am extremely pleased to have Chengxin as our partner; they are a well-respected presence in the lithium space. The additional capital raised will aid in the development and growth of our lithium projects. Chengxin's ability to move quickly, combined with their strong capital position, will allow Lithium Chile to not only accelerate their existing projects but also gives the financial strength to look at other opportunities."
Lithium Chile is also please to announce that further to its March 31, 2022, news release, the TSX Venture Exchange has approved the company's option agreement dated March 30, 2022, with Monumental Minerals.
The option agreement allows Monumental to acquire up to 75 per cent of the 5,200-hectare Salar De Laguna Blanca project located near the town of San Pedro de Atacama, Chile.
In order to exercise the option to acquire a 75-per-cent interest in the Laguna project, Monumental must issue 3,401,874 common shares to Lithium Chile within 30 days of the acceptance date, make certain staged cash payments to Lithium Chile and incur exploration expenditures on the Laguna project as follows:
Make cash payments of an aggregate of $1.5-million according to the following schedule:
- $200,000 within 30 days of final exchange approval of this transaction;
- $250,000 on or before the 18-month anniversary of the acceptance date;
- $300,000 on or before the second anniversary of the acceptance date;
- $750,000 on or before the third anniversary of the acceptance date.
- Incur minimum expenditures on the Laguna project of not less than an aggregate of $1.5-million according to the following schedule:
$200,000 on or before the first anniversary of the acceptance date;
- $500,000 on or before the second anniversary of the acceptance date;
- $800,000 on or before the third anniversary of the acceptance date.
Mr. Cochrane comments: "We are extremely pleased to have this joint venture with Monumental on our Laguna Blanca prospect approved. This agreement will allow Lithium Chile to move a number of priority projects forward simultaneously. Monumental's prior lithium experience in Argentina will be an invaluable asset to Lithium Chile."
About Lithium Chile Inc.
Lithium Chile is advancing a lithium property portfolio consisting of 69,200 hectares covering sections of 10 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns five properties, totalling 20,429 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 meg porphyry gold/silver/copper belt.
Lithium Chile's common shares are listed on the TSX-V under the symbol LITH and on the OTCBB under the symbol LTMCF.
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