Offering's proceeds used for the development of Maricunga project
By Devika Patel
Knoxville, Tenn., Aug. 24 - Li3 Energy, Inc. amended the terms of an $18 million private placement of units with investor Posco Canada Ltd. on Aug. 17, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on Aug. 24, 2011 and raised $8 million at pricing.
The company sold 38,095,300 units of one common share and one warrant at $0.21 per unit in the initial closing. It will sell units at $0.16 per unit in the second closing.
Each whole warrant will now be exercisable at $0.21 for three years. The warrants originally were exercisable at $0.40. The strike price is a 75% premium to the Aug. 23, 2011 closing share price of $0.12.
Posco Canada will also receive a two-year bonus warrant for 5 million shares, which will be exercisable at $0.15 per share. The strike price is a 25% premium to the Aug. 23, 2011 closing price.
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: | $18 million
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| Price: | $0.21, $0.16
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| Warrants: | One warrant per unit, plus a bonus warrant for 5 million shares
|
| Warrant expiration: | Three years, two years
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| Warrant strike price: | $0.21, $0.15
|
| Investor: | Posco Canada Ltd.
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| Pricing date: | Aug. 24, 2011
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| Settlement date: | Aug. 24, 2011 (for $8 million)
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| Amended: | Aug. 17
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| Stock symbol: | OTCBB: LIEG
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| Stock price: | $0.075 at close Aug. 23
|
| Market capitalization: | $25.24 million
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