Mr. Steven Cochrane reports
LITHIUM CHILE CLOSES THE PREVIOUSLY ANNOUNCED $27,900,000 PRIVATE PLACEMENT AT $0.95 WITH CHENGXIN LITHIUM GROUP AND EXPANDS THEIR DEVELOPMENT PROGRAM ON SALAR DE ARIZARO ARGENTINA, FROM THREE WELLS TO SEVEN WELLS
Lithium Chile Inc. has successfully closed the company's previously announced 95-cent private placement with Chengxin Lithium Group. The $27.9-million added to the company's existing working capital of approximately $15-million will give the company an unprecedented $43-million in cash. The company is in a strong financial position to accelerate existing exploration projects and the financial flexibility to pursue other opportunities.
In light of the company's healthy working capital position and significant resource
reported on its maiden well, Lithium Chile is also pleased to announce it is expanding the company's previously announced phase 2 development program (see Feb. 14, 2022, news release) on the company's Arizaro property. The program has expanded from three exploration holes to four exploration holes and up to three additional production wells. This expanded program now budgeted at $4-million (U.S.) has the full support and participation of Chengxin Lithium Group. Chengxin's goal is to advance the company's Salar de Arizaro property into production as soon as possible. Two rigs have been contracted and a temporary camp to house the drilling contractors and company technicians has been rented. The company anticipates drilling to commence soon; delays are a result of the significant increase in activities throughout the lithium industry.
Currently under way, Lithium Chile is completing a unique metallurgical testing program on its future production well to define the proper approach for direct lithium extraction. The company is working with Chengxin on an innovative trial with the most advanced resin technology using a titanium oxide base.
In addition to the company's planned development program on its central Salar de Arizaro claims, the company has also received a permit to drill an exploration water well on its southernmost claim on Arizaro. The well will be located in an area where approximately 70 per cent of the freshwater flows into the basin. This will be the first freshwater well to be drilled on the Salar de Arizaro and will give the company a significant advantage when the property moves toward production.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 80,938 hectares covering sections of 11 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns five properties, totalling 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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