- Closes fully subscribed C$20
million non-brokered private placement
- Due to excess demand, announces C$6
million brokered private placement
- Proceeds to be used to continue a 2017/18 accelerated
exploration program on its lithium assets in Argentina
/NOT FOR DISSEMINATION IN THE US OR
THROUGH US NEWSWIRE SERVICES/
TORONTO, Oct. 30, 2017 /CNW/ - LSC Lithium
Corporation ("LSC" or together with its subsidiaries, the
"Corporation") (TSXV:LSC) is pleased to announce that it has
closed the final tranche of its previously announced C$20 million non-brokered private placement of
common shares (the "Offering"). The Offering was fully
subscribed and the Corporation has issued a total of 18,181,817
common shares for aggregate gross proceeds of C$20,000,000.
The final tranche of the Offering consisted of 3,150,467 common
shares for aggregate gross proceeds of approximately C$3.5 million. The common shares were issued on
October 27, 2017 and are subject to
resale restrictions under Canadian securities laws which will
expire on February 28, 2018. Finder's
fee totaling C$871,480 was paid in
connection with the Offering.
The Corporation is also pleased to announce that due to excess
demand, it has engaged GMP Securities L.P. ("Agent") to act
as Lead Agent with respect to a proposed best efforts private
placement of units of the Corporation (the "Units"), at a
price of C$1.25 per Unit,
representing total gross proceeds of C$6,000,000 (the "Brokered Offering").
Each Unit consists of one common share of the Corporation and
one-half of one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant will entitle the holder to
acquire one common share of the Corporation at a price of
C$1.55 for a period of 36 months
following the closing of the Brokered Offering. The Warrants will
have an acceleration provision such that if, at any time after the
first six months following the closing of the Brokered Offering,
the volume-weighted average daily trading price of the
Corporation's common shares on the TSX-Venture Exchange is
C$2.25 or more for 10 consecutive
trading days, then the Corporation may, anytime thereafter,
accelerate the expiry date of the Warrants to the date that is 20
days following the date the Corporation provides notice to warrant
holders of the new expiry date.
The net proceeds of the Brokered Offering will allow LSC to
further continue its expanded exploration program for 2017 and 2018
on its lithium assets in Argentina. The Corporation expects the closing
of the Brokered Offering to occur on or about November 9, 2017, or some other date that the
Corporation and the Agent mutually agree upon.
The Agent will be paid a broker's fee equal to 6% of the gross
proceeds of the Brokered Offering and receive broker's warrants
equal to 6% of the number of Units sold pursuant to the Brokered
Offering as compensation for acting as the broker in connection
with the Brokered Offering.
The Units will be offered for sale by way of private placement
pursuant to applicable exemptions from the prospectus requirements
in all of the Provinces of Canada.
The Agent will also be entitled to offer the Units for sale in
the United States pursuant to
available exemptions from the registration requirements of the
United States Securities Act of 1933, as amended, and in those
other jurisdictions outside of Canada and the
United States provided no prospectus filing or comparable
obligation arises in such other jurisdiction. The Units sold
pursuant to the Brokered Offering will be subject to a 4 month hold
period under applicable securities laws.
ABOUT LSC LITHIUM CORPORATION
LSC Lithium has amassed a large portfolio of prospective lithium
rich salars and is focused on developing its tenements located in
five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes,
and Jama. All LSC tenements are located in the "Lithium Triangle,"
an area at the intersection of Argentina, Bolivia, and Chile where the world's most abundant lithium
brine deposits are found. LSC Lithium has a land package portfolio
totaling approximately 300,000 hectares, which represents extensive
lithium prospective salar holdings in Argentina.
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information. These statements relate to future
events or future performance, including statements regarding the
Brokered Offering and its completion. The use of any of the words
"could", "intend", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on LSC's current belief
or assumptions as to the outcome and timing of such future events.
Whether actual results and developments will conform with LSC's
expectations is subject to a number of risks and uncertainties
including factors underlying management's assumptions, including
risks related to completion of the Brokered Offering, the use of
proceeds of the Brokered Offering, expected timing of closing the
Brokered Offering and the approval of the regulatory authorities.
Actual future results may differ materially. The forward-looking
information contained in this release is made as of the date hereof
and LSC is not obligated to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein. For more
information see the Corporation's filing statement on SEDAR at
www.sedar.com.
Neither the TSX Venture Exchange Inc. 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.
The TSX Venture Exchange Inc. has neither approved nor
disapproved the contents of this press release.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the U.S. Securities Act)
or any state securities laws and may not be offered or sold within
the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
SOURCE LSC Lithium Corporation