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by Stockwatch Business Reporter
The TSX Venture Exchange closed up 3.36 points to 402.55 Tuesday.
Aneel Waraich's first capital pool shell, Spirit Banner Capital Corp. (SBCC: halted), has submitted a filing statement for its qualifying transaction, which is a Mongolian lithium deal. Specifically, the shell is acquiring Ion Energy Ltd., owner of the Baavhai-Uul lithium property in southeastern Mongolia. The shell will roll back 1 for 2, leaving it with 9,515,390 shares issued, then issue 29,720,962 shares to its target's shareholders.
Baavhai-Uul covers 81,760 hectares. It is an early-stage property, which means there are no defined mineral resources yet. In 2016, a local university collected 11 samples from the property. The samples yielded up to 810 parts per million lithium. Ion Energy acquired the property last year.
On Sept. 30, 2019, Ion Energy had a working capital deficit of $924,386 (and no long-term debt). Before the QT can close, it must raise money. It is therefore selling a $1.3-million to $3-million private placement at 30 cents. It had hoped to complete this financing in December, and then in January, and then in February, but the financing has still not closed. The company now says it expects to complete the financing in late April. In any case, Ion Energy will use part of the proceeds to repay a $225,000 loan provided to it by the shell. Then the resulting issuer will use the rest of the proceeds for working capital and exploration, including sampling, mapping and surveys.
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