LITH:CC - Lithium Chile Strategic Investor Chengxin Lithium Increases Stake to 19.86% Through a $27911000 Private Placement
(TheNewswire)
CALGARY, ALBERTA – TheNewswire- April 4, 2022 – Lithium Chile Inc. (TSXV:LITH) (OTC:LTMCF) (“ Lithium Chile ” orthe “ Company ”) is pleased to announce that it plans to complete anon-brokered private placement of 29,380,000 common shares of theCompany (“ OfferedShares ”) at a price of $0.95 per OfferedShare, for aggregate gross proceeds of $27,911,000 (the“ Offering ”). The Offering is to be completed by a wholly ownedsubsidiary of Chengxin Lithium Group Co., Ltd.(“ Chengxin ”). In conjunction with the Offering, Chengxin will beentitled to nominate two directors to the board of directors ofLithium Chile and Chengxin has agreed to provide Lithium Chile withtwo technical personnel to aid in the exploration and development ofthe Company's properties in Argentina.
Chengxin participated in the recent private placementcompleted by Lithium Chile (see news release dated January 31, 2022).That private placement was for units comprised of 4,285,720 commonshares and 4,285,720 share purchase warrants. Completion of theproposed Offering, along with the exercise of Chengxin existingwarrants, will bring Chengxin’ stake in the Company to 19.86%. Thiswill result in total gross proceeds of $34,553,866.
Steve Cochrane, President and CEO commented“ We are thrilled to haveChengxin as a key strategic and cornerstone shareholder of ourCompany. Chengxin supports our vision, and with their investment, wecan rapidly accelerate the exploration and developments of ourproperties with an eye on increasing our existing resources in a verymeaningful way. These additional funds will allow the Company to lookat opportunities we have been presented with that will result inexpanding our footprint in both Argentina and Chile. Chengxin is awell-respected leader in the lithium space; their extensive experiencewill be valuable as our Company continues to forge ahead. I note therecent investment by BYD in Chengxin gives the Company a door into thewhole supply chain for electric vehicles."
Chengxin recently announced a strategic cooperationagreement with BYD, China’s largest electric carmaker, which will provide for no more than $ 6 00 million CDN investment for more than 5% stake inChengxin (subject to approval) . Chengxin and BYD expect that the cooperation agreement willallow them to jointly acquire and develop lithium resources, and BYDwill step up the procurement of lithium products for supply stabilityand cost advantages.
Chengxin is a publicly listed company in China with amarket capitalization of 45.6 billion yuan ($9 billion CDN) and atDecember 31st, 2021, its net profit was 862 million yuan ($1 7 0 million CDN) for the fiscal year.Chengxin is primarily engaged in the new energy materials businessincluding production from spodumene and brines as well asmanufacturing of lithium products including lithium hydroxide andlithium carbonate.
At present, Chengxin has 70kt of lithium productcapacity and ranks No. 2 in China, with another 60kt capacity under construction in Indonesia.To secure feedstock supplies, Chengxin owns upstream resource in Chinaand overseas including an existing asset in Argentina.
Completion of the Offering is subject to regulatoryapproval including, but not limited to, the approval of the TSXVenture Exchange. The Offered Shares issued under the Offering will besubject to a four month hold period from the date of the closing ofthe Offering.
Pursuant to the completion of the Investor Relationscontract with Clarkham Capital, the agreement will be terminated onApril 30, 2022.
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 OTCBB under the symbol“ LTMCF ”.
To find out more about Lithium Chile Inc., pleasecontact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca or alternately, Jose de Castro Alem, Argentina Manager viaemail jdecastroalem@gmail.com orMichelle DeCecco, Vice President of Corporate Development 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.
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 closing of the Offering and the Company's ability to obtainnecessary approvals for the Offering. Such forward-looking statementsare based on various assumptions and factors that may prove to beincorrect, including, but not limited to, factors and assumptions withrespect to: the general stability of the economic and politicalenvironment in which the Company operates; the timely receipt ofrequired regulatory approvals; the ability of the Company to obtainfuture financing on acceptable terms; currency, exchange and interestrates; operating costs; the success the Company will have in exploringits prospects and the results from such prospects. You are cautionedthat the foregoing list of material factors and assumptions is notexhaustive. Although the Company believes that the assumptions andfactors on which such forward-looking statements are based arereasonable, undue reliance should not be placed on the forward-lookingstatements because the Company can give no assurance that they willprove to be correct or that any of the events anticipated by suchforward-looking statements will transpire or occur, or if any of themdo so, what benefits the Company will derive there from. Actualresults could differ materially from those currently anticipated dueto a number of factors and risks including, but not limited to:fluctuations in market conditions, including securities markets;economic factors; the risk that the new lithium exploration tenderprocess does not yield the anticipated benefits to the Company, if atall; the risk that the Offering will not be completed as anticipatedor at all, including the risk that the Company will not receive theapprovals necessary in connection with the Offering; 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.
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