By Susanna Moon
Chicago, March 29 - AmeriLithium Corp. said it entered into a $10 million financing agreement on March 26 with a European institutional investor focused on mining ventures.
According to the terms of thedeal, AmeriLithium received a $10 million equity drawdown facility.
In exchange, the investor will receive AmeriLithium stock at an exercise price of 95% volume-weighted average price based on the past five trading days.
The company also granted the investor 100% warrant coverage at a price of 150% of the price of the unit purchased at the above price calculation.
"Not only has AmeriLithium gained the support and substantial financial backing of a forward-thinking backer, but through this investment, we also find ourselves in the perfect position to immediately initiate our exploration program," Matthew Worrall, chief executive officer of AmeriLithium, said in a press release.
The financingwill effectively enable AmeriLithium to launch its geological explorationprogram for its North American properties.
AmeriLithium is a mining company based in Lake Tahoe, Nev.
| Issuer: | AmeriLithium Corp.
|
| Issue: | Equity drawdown facility
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| Amount: | $10 million
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| Warrants: | 100% warrant coverage
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| Warrant price: | 150%
|
| Pricing date: | March 26
|
| Stock symbol: | (OTCBB: AMEL)
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| Stock price: | $1.50 at close March 29
|
| Market capitalization: | $79.2 million
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