Company also raises $2.8 million in private placement of equity units
By Devika Patel
Knoxville, Tenn., May 3 - Li3 Energy, Inc. said it settled a bridge loan, represented by original issue discount notes due Feb. 2, 2012, with three investors. The company received $1.5 million for $1.68 million of 0% notes. It also raised $2.8 million in a previously announced placement of units.
The notes are convertible into common stock at $0.40 per share, a 6.98% discount to the May 2 closing price of $0.43.
Investors also received warrants for 1.5 million shares, which are exercisable at $0.50 for five years.
The company also said it raised about $2.8 million in its equity offering. It settled a $2 million initial tranche of the $4.9 million deal on April 8.
The deal is being conducted to fund the company's acquisition of a 60% interest in the Maricunga Project in northern Chile and priced on April 4.
The company is selling units of one common share and one half-share warrant at $0.27 apiece. It sold 7,406,666 units in the first closing.
Each whole warrant is exercisable at $0.40 for three years. The strike price is a 17.65% premium to the April 1 closing share price of C$0.34.
Gottbetter Capital Markets, LLC is the lead placement agent; Rodman & Renshaw, LLC is co-placement agent and LW Casa de Valores SA also participated. Pacific Road Capital Management will invest $2 million.
The lithium mining and energy company is based in Lima, Peru.
| Issuer: | Li3 Energy, Inc.
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| Market capitalization: | $30.11 million
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| May 3 deal
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| Issue: | Bridge loan, evidenced by original issue discount notes
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| Amount: | $1,677,438
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| Maturity: | Feb. 2, 2012
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| Coupon: | 0%
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| Price: | $1.5 million
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| Conversion price: | $0.40
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| Warrants: | For 1.5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.50
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| Settlement date: | May 3
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| Stock symbol: | OTCBB: LIEG
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| Stock price: | $0.43 at close May 2
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| April 8 deal
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | $4.9 million
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| Price: | $0.27
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.40
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| Agents: | Gottbetter Capital Markets, LLC, (lead), Rodman & Renshaw, LLC, LW Casa de Valores SA
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| Investor: | Pacific Road Capital Management (for $2 million)
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| Pricing date: | April 4
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| Settlement dates: | April 7 (for $1,999,800), May 3 (for $2.8 million)
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| Stock symbol: | OTCBB: LIEG
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| Stock price: | $0.32 at close April 4
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