TORONTO, Dec. 13, 2018 /CNW/ - Desert Lion Energy Inc.
(TSXV: DLI) (OTCQB: DSLEF) ("Desert Lion" or the
"Company") is pleased to announce it has successfully closed
the second tranche of its previously announced non-brokered private
placement of 9,856,258 units ("Units") at a price of
$0.07 per Unit for gross proceeds to
the Company of $689,938.06 (the
"Private Placement"). This follows the announcement on
December 10, 2018 of the closing of
an initial tranche of Units for gross proceeds of
approximately $2,000,000 and secured
convertible promissory notes for gross proceeds of $5,000,000 with AIP Asset Management.
Each Unit issued in the Private Placement is comprised of one
common share of the Company and one-half of one common share
purchase warrant (a "Warrant"). Each whole Warrant will
entitle the holder thereof to acquire one additional common share
of the Company at a price of $0.20
until December 13, 2020.
"AIP's investment of $5,000,000,
with an additional $5,000,000
available for potential acquisitions and an aggregate of
$2,689,938 from equity investors
reiterates management's belief in the potential for the Desert Lion
Energy project," commented Tim
Johnston, CEO of Desert Lion Energy Inc. "The financing will
allow us to continue to build upon the excellent results recently
published in the PEA and support initiatives for strategic growth
as we develop a world class lithium company."
Paul Bozoki, Chief Executive
Officer of the Company, and Peter
McCague, Director of the Company, participated in the
Private Placement as subscribers for 616,500 and 1,500,000 Units
respectively. Although pursuant to Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101"), this subscription for Units
constitutes a "related party transaction" the Company is relying on
an exemption from the formal valuation and minority shareholder
approval requirements of MI 61-101 pursuant to exemptions contained
in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the
value of the subscription is less than 25% of the Company's market
capitalization.
All securities issued by the Company in the Private Placement
are subject to a statutory hold period that expires on April 14, 2019.
About Desert Lion Energy
Desert Lion Energy is an emerging lithium development company
focused on building Namibia's
first large-scale lithium mine to be located approximately 210 km
from the nation's capital of Windhoek and 220 km from the Port of Walvis
Bay. The Company's Rubicon and Helikon mines are located within a
301 km2 prospective land package. The project site is
accessible year-round by road and has access to power, water, rail,
port, airport and communication infrastructure.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Generally, any
statements that are not historical facts may contain
forward-looking information, and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or indicates that certain actions, events or results
"may", "could", "would", "might" or "will be" taken, "occur" or "be
achieved." Forward-looking information includes, but is not limited
to, statements and expectations regarding the closing of the
Offering and the timing thereof. Forward-looking information is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from
those expressed or implied by such forward-looking
information.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
NEITHER TSX VENTURE EXCHANGE 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
SOURCE Desert Lion Energy