Southern Lithium says that it has closed its non-brokered private placement financing for gross proceeds of 10,445,00 US dollar through the sale of 4,178,000 units (each “Unit”) at 0.25 dollar per unit. Each Unit will consist of one common share (“Common Share”) of the Company and one non-transferable share purchase warrant (“Warrant”) which is exercisable at 0.35 dollar for a period of eighteen months.
In the event that the Company’s common shares trade at a closing price greater than 0.50 dollar per share for a period of 10 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving written notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date hereafter referred to as the (“Forced Conversion Feature”) on which such notice is given by the Company.
The Private Placement was approved by all of the independent directors of the Company. Southern intends to use the proceeds for the advancement of the Cruz Lithium Property, further investment opportunities and general working capital purposes.
All securities issued in the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
In addition, Southern has paid finders' fee in connection with the Private Placement. The finders were paid an aggregate cash sum of 25,200.00 dollar. In addition, the finders were granted Warrants ("Finders Warrants") to purchase an aggregate of 100,800 Warrants at a price of 0.35 dollar per Finders Warrant.
Each Finders Warrant consists of (1) non-transferable share purchase warrant (“Warrant”), exercisable into Common Shares at a price $0.35 per Common Share and having a term of eighteen months (18) from the date of Closing provided that if after four (4) months and one day following the Closing Date, the closing price of the Common Shares on the principal market on which such shares trade is equal to or exceeds 0.50 dollar per share for a period of 10 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving written notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date hereafter referred to as the (“Forced Conversion Feature”) on which such notice is given by the Company.
In addition, the company would like to announce the issuance of 725,000 stock options at 0.25 dollar expiring in one year from issuance date.
About Southern Lithium Corp (TSX-V: SNL FSE: SL5)
Southern Lithium Corp. is a resource exploration company engaged in the business of acquiring and exploring minerals properties. Southern Lithium Corp. has assembled an experienced management team with a growth strategy to develop a portfolio of Lithium projects.
The Company’s main objective is to add shareholder value through exploration and development of high quality resources through strategic acquisitions, joint ventures, and marketing while maintaining a lower risk profile through project diversification and sound, cost-effective financial management. With the potential acquisition of the Cruz property, Southern Lithium intends to establish its presence in the Pocitos basin and further deliver on its mission to secure technically superior lithium projects. The Company is only focusing on projects of the highest technical merit in favorable geopolitical jurisdictions.
Source: Southern Lithium
