Lithium Chile Announces Proposed Private Placement

- May 11th, 2020

Lithium Chile Inc. (TSXV:LITH) announces that it plans to complete a non-brokered private placement.

Lithium Chile Inc. (TSXV:LITH)(“Lithium Chile” or the “Company”) announces that it plans to complete a non-brokered private placement of up to 15,000,000 units of the Company (the “Units”) at a price of $0.10 per Unit, for aggregate gross proceeds of up to $1,500,000 (the “Offering”). There is no minimum Offering. Each Unit will be comprised of one (1) common share of the Company (a “Common Share”) and one-half of one (1/2) Common Share purchase warrant (“Warrant”). Each whole Warrant shall be exercisable at $0.25 per Common Share for a period of 12 months from the date of closing of the Offering.

Lithium Chile may pay a cash commission or finder’s fee to qualified non-related parties of up to 8% of the gross proceeds of the Offering and broker warrants (the “Broker Warrants”) equal to up to 8% of the number of Common Shares sold in the Offering. Each Broker Warrant will entitle the holder to acquire one Common Share at a price of $0.10 per Broker Warrant for a period of 12 months from the date of issuance.

The use of proceeds of the Offering is dependent on the final amount raised. Based on the maximum offering, the use of proceeds will be as follows: (i) $450,000 to advance exploration activities on the Company’s Salar de Coipasa, Salar de Helados, Salar de Laguna Blanca and Salar de Turi lithium properties; (ii) $350,000 on costs related to maintaining the Company’s existing claims (iii) $400,000 on exploration of the Company’s Carmona and La Fortuna gold properties; and (iv) $300,000 for general corporate purposes including the costs of the Offering.

As the Company is relying on the Exemption for Sales to Purchasers Advised by Investment Dealers, it confirms that there is no material fact or material change related to the Company which has not been generally disclosed. The Company will also rely on the prospectus exemption allowing sales to accredited investors.

Completion of the Offering is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The Common Shares, Warrants and Broker Warrants issued will be subject to a four month hold period from the date of the closing of the Offering.

It is expected that insiders of the Company will participate in the Offering.

About Lithium Chile

Lithium Chile is advancing a lithium property portfolio consisting of 110,280 hectares covering sections of 11 salars and two laguna complexes in Chile.

Lithium Chile is now also advancing a property portfolio that is prospective for gold, silver and copper. Two of those properties, Apolo and Sancarron, lie within the core of the El Indo Gold belt noted for its multi-million-ounce gold deposits and are the subject of a recently entered option agreement which is expected to result in significant exploration efforts being expended thereon.

Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-QB under the symbol “LTMCF”.

To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca or alternately, Jeremy Ross, VP Business Development, at (604) 537-7556 or via email: jeremy@lithiumchile.ca. Chilean contact is Terry Walker, VP Exploration at (011) 562 2455-6473 or via email: twalker@chilelithium.cl.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

NOT FOR RELEASE IN THE UNITED STATES OF AMERICA

Forward Looking Statements

This news release may contain certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. In particular, this news release contains forward-looking statements relating to, among other things, the closing of the private placement, statements pertaining to the use of proceeds, and the Company’s ability to obtain necessary approvals from the TSX Venture Exchange.

You are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to: the general stability of the economic and political environment in which the Company operates; the timely receipt of required regulatory approvals; the ability of the Company to obtain future financing on acceptable terms; currency, exchange and interest rates; operating costs; the success the Company will have in exploring its prospects and the results from such prospects. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements herein, except as required by applicable securities laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Click here to connect with Lithium Chile Inc (TSXV:LITH, OTC:LTMCF) for an Investor Presentation.

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