LTMCF - Lithium Chile Closes its Previously Announced $0.70 Unit Financing and Welcomes Chengxin Lithium Group as Strategic Investor
(TheNewswire)
CALGARY, ALBERTA - TheNewswire - January 31, 2022 - LithiumChile Inc. (“ LithiumChile ” or the “ Company ”) (TSXV:LITH) (OTC:LTMCF) is pleased to announce that it has closed itsrecently announced non-brokered private placement of units of the Company (“ Units ”) at a priceof $0.70 per Unit, issuing 10,060,000 Units foraggregate gross proceeds of $7,042,000 (the " Offering "). Each Unit is comprised of one (1) common shareof the Company (“ CommonShare ”) and one (1) Common Share purchasewarrant (“ Warrant ”). Each Warrant is exercisable at$0.85 per Common Share for a period of 24 months from the date ofclosing of the Offering. Completion of theOffering is subject to regulatory approval including, but not limitedto, the approval of the TSX Venture Exchange. The Common Shares andWarrants issued under the Offering will be subject to a four monthhold period from the date of the closing of the Offering.
The Company welcomes Chengxin Lithium Group Co., Ltd.(“ Chengxin ”), as a strategic investor, purchasing $3,000,004 of the recent Offering through a whollyowned subsidiary. Chengxin is a listed company in China with a market capitalization of 4 0 billion yuan ($ 8 billion Cdn) and as of September 30 th , 2021, their operating income for the first three quarters was 1.86 billion yuan($ 371 million Cdn). Chengxin primarily engagesin new energy materials business, from spodumene mining to basiclithium products manufacturing and sales .
At present, Chengxin commands a total of 70.4kt lithiumproduct capacity, and ranks No.2 in China, with another 60kt capacityunder long-term planning in Indonesia. To secure feedstock supplies, C hengxin owns upstream resource in China andoverseas. In China, Chengxin owns a producing mine with raw spodumenethroughput of 405kt/year and invested in a mine with an inferredresource of 38.44 million tons. Overseas, Chengxin invested in aspodumene project with 40 mining claims in Zimbabwe and acquired 50%stake and operating right of the UT of Argentina SDLA (Sal de LosAngeles) brine project in Salta province. Chengxin pays high attentionto resource investment globally and aspires to be a leading new energymaterial producer in the world. For moreinformation about Chengxin Lithium Group Co. Ltd., visit theirwebsite: Chengxin Lithium Group Co., Ltd.(cxlithium.com)
President and CEO, Steve Cochrane shares, “HavingChengxin Lithium as a strategic investor is yet another step forwardfor Lithium Chile. Their operational experience and expertise in thelithium space is an incredible opportunity for our Company to advanceour exploration and development projects not only in Argentina butChile as well. I look forward to a successful and long-termcollaboration with the Chengxin Lithium Group.”
The Company further announces an additional 90-daycontract with Clarkham Capital (“ Clarkham ”) for itsservices in providing investor relations and digital marketingthroughout Europe. Pursuant to the contract with Clarkham, the Companywill pay € 100,000 andgrant an option to purchase 150,000 Common Shares, with an exerciseprice of $0.95 per share, subject to vesting terms and exercisable forup to 5 years. The agreement with Clarkham and the option are subjectto the approval of the TSX Venture Exchange.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolioconsisting of 69,200 hectares covering sections of 10 salars and twolaguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429hectares, that are prospective for gold, silver and copper.Exploration efforts are continuing on Lithium Chile’s Carmonagold/silver/copper property which lies in the heart of the Chileanmega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “ LITH ” and on the OTC-BB under the symbol“ LTMCF ”.
To find out more about Lithium Chile Inc., pleasecontact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca , Jose deCastro Alem, Argentina Manager via email jdecastroalem@gmail.com orMichelle DeCecco, Vice President of Corporate Development via email michelle@lithiumchile.ca or at403-390-9095.
NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
NOT FOR RELEASE INTHE UNITED STATES OF AMERICA
This news release does not constitute an offer to sellor the solicitation of an offer to buy any securities in the UnitedStates. Any securities referred to herein have not been and will notbe registered under the United States Securities Act of 1933 (the" 1933 Act ") and may not be offered or sold in the United Statesor to or for the account or benefit of a U.S. person in the absence ofsuch registration or an exemption from the registration requirementsof the 1933 Act and applicable U.S. state securities laws.
Forward Looking Statements
This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking statements can beidentified by the use of forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. In particular, this news releasecontains forward-looking statements relating to, among other things:the Company's ability to obtain necessary approvals for the Offeringand the investor relations agreement with Clarkham from the TSXVenture Exchange. Such forward-looking statements are based on variousassumptions and factors that may prove to be incorrect, including, butnot limited to, factors and assumptions with respect to: the generalstability of the economic and political environment in which theCompany operates; the timely receipt of required regulatory approvals;the ability of the Company to obtain future financing on acceptableterms; currency, exchange and interest rates; operating costs; thesuccess the Company will have in exploring its prospects and theresults from such prospects. You are cautioned that the foregoing listof material factors and assumptions is not exhaustive. Although theCompany believes that the assumptions and factors on which suchforward-looking statements are based are reasonable, undue relianceshould not be placed on the forward-looking statements because theCompany can give no assurance that they will prove to be correct orthat any of the events anticipated by such forward-looking statementswill transpire or occur, or if any of them do so, what benefits theCompany will derive there from. Actual results could differ materiallyfrom those currently anticipated due to a number of factors and risksincluding, but not limited to: fluctuations in market conditions,including securities markets; economic factors; the risk that the newlithium exploration tender process does not yield the anticipatedbenefits to the Company, if at all; the risk that the Offering willnot be completed as anticipated or at all, including the risk that theCompany will not receive the approvals necessary in connection withthe Offering; and the impact of general economic conditions and theCOVID-19 pandemic. The Company does not undertake to update anyforward-looking statements herein, except as required by applicablesecurities laws. All forward-looking statements contained in this newsrelease are expressly qualified by this cautionary statement.
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