Posco Canada may also invest another $10 million if conditions are met
By Devika Patel
Knoxville, Tenn., Aug. 26 - Li3 Energy, Inc. negotiated an $8 million private placement of units with investor Posco Canada Ltd. on Aug. 24, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company will sell 38,095,300 units of one common share and one warrant at $0.21 per unit.
Each whole warrant is exercisable at $0.40 for three years. The strike price is a 233.33% premium to the Aug. 23 closing share price of C$0.12.
Posco has agreed to purchase an additional 47,619,000 units at the same price for $10 million if the company meets certain conditions, including updating a measured and indicated resource report, completing its work program and having the necessary permits and approvals in place for building and operating a brine test facility on the Maricunga property. The company will also appoint a director nominated by Posco to its board of directors.
Proceeds will be used for activities related to the development of the Maricunga project.
The lithium mining and energy company is based in Lima, Peru.
| Issuer: | Li3 Energy, Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $8 million
|
| Units: | 38,095,300
|
| Price: | $0.21
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.40
|
| Investor: | Posco Canada Ltd.
|
| Pricing date: | Aug. 24
|
| Stock symbol: | OTCBB: LIEG
|
| Stock price: | $0.15 at close Aug. 24
|
| Market capitalization: | $41.97 million
|
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