Etna Resources Inc. (to be renamed Pan American Lithium Corp.) Announces Letter of Intent with POSCO for Potential Private Place
January 13 2010 - 8:00AM
Marketwired
Etna Resources Inc. ("Etna") (TSX VENTURE: ETN) is pleased to
announce that it has entered into a non-binding letter of Intent
("LOI") with POSCO, whereby an amount of up to CDN$5 million may be
invested by POSCO in Etna (the "Investment").
The LOI provides that POSCO will undertake and complete
technical due diligence on Etna and Etna's projects within 30 days
from January 4, 2010 (the "Effective Date"), and complete all other
due diligence and obtain management approvals for the Investment
within 60 days of the Effective Date.
Should POSCO determine to proceed, the parties will execute and
deliver a subscription agreement for the Investment, within 60 days
of the Effective Date, on the following terms:
-- POSCO will make an initial payment of CDN$1 million on signing of the
subscription agreement
-- POSCO will make the remaining payment of CDN$4 million at closing of the
subscription agreement
-- POSCO will receive Etna shares at a price of CDN$.50 per share, or such
greater price if required by the policies of the TSX Venture Exchange
-- for each share purchased, POSCO will receive a 1/2 warrant to purchase
Etna shares at a price of CDN$1.00 per share for 2 years; the warrants
will have a forced conversion feature whereby POSCO will be obligated to
exercise the warrants if Etna shares trade at a price of CDN$1.40 or
above for fifteen (15) consecutive trading days
The securities issuable to POSCO on closing will include a hold
period in accordance with applicable securities laws.
Conditions of Closing
Closing of the Investment is subject to certain conditions
including: (a) completion of POSCO's satisfactory due diligence
review of Etna and its projects; (b) receipt of all necessary
regulatory and exchange approvals; and (c) receipt of all necessary
internal, management and Board approvals.
About POSCO
POSCO is a privately held Korean conglomerate, first established
in 1967, with a focus on the production and sale of steel and steel
products, both domestically in Korea and internationally. POSCO is
the fourth largest steel producer in the world. In 2008, POSCO
produced over 33 million tons of crude steel, had revenues of over
CDN$28 billion and net profits of over $CDN4 billion.
On Behalf of the Board,
ETNA RESOURCES INC.
Andrew A. Brodkey, President and CEO
This press release contains projections and forward-looking
information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance of the Company such as the statement that the private
placement may occur. There are numerous risks and uncertainties
that could cause actual results and the Company's plans and
objectives to differ materially from those expressed in the
forward-looking information, including the (i) satisfactory due
diligence of Etna and its properties by POSCO; (ii) inability to
obtain Exchange approval and close the financing for any reason;
(iii) adverse market conditions; (iv) a decrease in demand for and
price of lithium; and (v) general uncertainties with respect to
mineral exploration in general. Actual results and future events
could differ materially from those anticipated in such information.
These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on
the dates they are made and are expressly qualified in their
entirety by this notice.
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.
Contacts: Etna Resources Inc. Andrew A. Brodkey President and
CEO 520-989-0022
Etna Resources Com Npv (TSXV:ETN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Etna Resources Com Npv (TSXV:ETN)
Historical Stock Chart
From Jul 2023 to Jul 2024