Investor Beijing Guofang also commits C$3.5 million for exploration
By Toni Weeks
San Diego, July 12 - Ultra Lithium Inc. said it settled the first tranche of a private placement of units with investor Beijing Guofang Mining Investment Co., Ltd.
The company sold 10 million units of one common share and one warrant at C$0.05 apiece for proceeds of C$500,000.
Each warrant is exercisable for one share at C$0.10 until July 9, 2014. The strike price is a 233.33% premium to the closing share price of C$0.03 on July 11.
In the second tranche, the investor and its associates will subscribe to an additional 10 million units at the same price, raising another C$500,000. Upon the completion of the second tranche, Beijing Guofang will become an insider of the company and hold 10.47% of the company's outstanding shares on an undiluted basis and up to 17.84% of the shares on a fully diluted basis.
Ultra Lithium entered into the financing agreement on April 18, at which time the investor also agreed to fund up to C$3.5 million of exploration expenditures on the company's Balkans Property in the Republic of Serbia over a period of three years.
| Issuer: | Ultra Lithium Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1 million
|
| Units: | 20 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | July 9, 2014
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Investor: | Beijing Guofang Mining Investment Co., Ltd.
|
| Settlement date: | July 12 (for C$500,000)
|
| Stock symbol: | TSX Venture: ULI
|
| Stock price: | C$0.03 at close July 11
|
| Market capitalization: | C$3.31 million
|
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