LITH:CC - Lithium Chile Closes the Previously Announced $27900000 Private Placement at $0.95 with Chengxin Lithium Group and Expands their Development Program on Salar De Arizaro Argentina from Three Wells to Seven Wells
(TheNewswire)
CALGARY, ALBERTA – TheNewswire- May 16, 2022 – LithiumChile Inc. (“ LithiumChile ” or the “ Company ”) (TSX:LITH) (OTC:LTMCF) is pleasedto announce that it has successfully closed the Company’s previouslyannounced $0.95 Private Placement with Chengxin Lithium Group(“ Chengxin ”). The $27,900,000 added to the Company’s existingworking capital of approximately $15,000,000, will give the Company anunprecedented $43,000,000 in cash. The Company is in a strongfinancial position to accelerate existing exploration projects and thefinancial flexibility to pursue other opportunities.
In light of the Company’s healthy working capitalposition and significant resource reported onits maiden well , Lithium Chile is also pleasedto announce they are expanding the Company’s previously announcedPhase 2 development program (see February 14, 2022, News Release) onthe Company’s Arizaro property. The program has expanded from threeexploration holes to four exploration holes and up to three additionalproduction wells. This expanded program now budgeted at US $4,000,000,has the full support and participation of Chengxin Lithium Group.Chengxin’s goal is to advance the Company’s Salar de Arizaroproperty into production as soon as possible. Two rigs have beencontracted and a temporary camp to house the drilling contractors andcompany technicians has been rented. The Company anticipates drillingto commence soon; delays are a result of the significant increase inactivities throughout the lithium industry.
Figure #2 – Phase 2 ExplorationCampaign - Proposed Well Locations, Arizaro, Argentina
Currently underway, Lithium Chile is completing aunique metallurgical testing program on its future production well todefine the proper approach for direct lithium extraction. The Companyis working with Chengxin on an innovative trial with the most advancedresin technology using a titanium oxide base.
Figure #2 - Brine samples taken to Alex Stewart International,Argentina
In addition to the Company’s planned developmentprogram on it’s central Salar de Arizaro Claims, the Company hasalso received a permit to drill an exploration water well on it’ssouthernmost claim on Arizaro. The well will be located in an areawhere approximately 70% of the freshwater flows into the basin. Thiswill be the first fresh water well to be drilled on the Salar deArizaro and will give the company a significant advantage when theproperty moves towards production.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolioconsisting of 80,938 hectares covering sections of 11 salars and 2laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 22,429hectares that are prospective for gold, silver and copper. Explorationefforts are continuing on Lithium Chile’s Carmona gold/silver/copperproperty which lies in the heart of the Chilean mega 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 de CastroAlem, Argentina Manager via email jdecastroalem@gmail.com or Michelle DeCecco, Vice President of CorporateDevelopment via email michelle@lithiumchile.ca orat 403-390-9095.
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.
Forward Looking Statements
This news release may contain certainforward-looking information and forward-looking statements within themeaning of applicable securities legislation (collectively"forward-looking statements"). Generally, forward-lookingstatements can be identified by the use of forward-looking terminologysuch as "expected", "anticipated", "aimsto", "plans to" or "intends to" or variationsof such words and phrases or statements that certain actions, eventsor results "will" occur. In particular, this news releasecontains forward-looking statements relating to, the entering into ofdefinitive agreements and regulatory body approvals. Suchforward-looking statements are based on various assumptions andfactors that may prove to be incorrect, including, but not limited to,factors and assumptions with respect to: the general stability of theeconomic and political environment in which the Company operates; thetimely receipt of required regulatory approvals; the ability of theCompany to obtain future financing on acceptable terms; currency,exchange and interest rates; operating costs; the success the Companywill have in exploring its prospects and the results from suchprospects. You are cautioned that the foregoing list of materialfactors and assumptions is not exhaustive. Although the Companybelieves 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 or cesium exploration tender processes does not yield theanticipated benefits to the Company, including the risk that theCompany will not receive the approvals necessary and the impact ofgeneral economic conditions and the COVID-19 pandemic. The Companydoes not undertake to update any forward-looking statements herein,except as required by applicable securities laws. All forward-lookingstatements contained in this news release are expressly qualified bythis cautionary statement.
Copyright (c) 2022 TheNewswire - All rights reserved.