Neo Lithium Corp. Announces C$20 Million Bought Deal Financing

Neo Lithium Corp. (TSX VENTURE: NLC) (“Neo Lithium” or the “Company”) is pleased to announce that it has entered into an agreement with Sprott Capital Partners, a division of Sprott Private Wealth LP who will lead a syndicate of underwriters (collectively, the “Underwriters”), and has agreed to purchase, on a bought deal basis, 18,181,819 units (the “Units”) of the Company at a price of C$1.10 per Unit, for aggregate gross proceeds of C$20 million (the “Offering”).
Each Unit will be comprised of one common share of the Company (a “Common Share” and collectively, the “Common Shares”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant” and collectively, the “Warrants”). Each whole Warrant shall be exercisable for one Common Share at a price of $1.40 per share (the “Exercise Price”) for a period of 18 months. However, in the event that the Common Shares trade on the TSX Venture Exchange (the “TSX-V”) at a closing price greater than the Exercise Price for a period of 20 consecutive trading days, the Company may give notice to the holders of the Warrants requiring that they exercise the Warrants with a period of thirty (30) days from the date of notice, failing which the Warrants shall expire.
The net proceeds of the Offering are expected to be used for advancement of the Company’s Tres Quebradas lithium project in Catamarca, Argentina and working capital.
The Units will be offered by way of private placement to “accredited investors” in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 45-106 — Prospectus Exempt Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. The Common Shares and Warrants composing the Units, respectively, will be subject to a four-month hold period in Canada.
The Units (and the underlying securities thereof) have not been registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and the Units (and the underlying securities thereof) may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
The Offering is expected to close on or about February 22, 2017. Closing of the Offering is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
About Neo Lithium Corp.
Neo Lithium Corp. is quickly becoming a prominent new name in lithium brine exploration by virtue of its quality 3Q project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its newly discovered 3Q project — a unique high-grade lithium brine lake and salar complex in the Latin America’s Lithium Triangle.
The 3Q project is located in the Province of Catamarca, the largest lithium producer in Argentina. The project covers approximately 35,000 ha and the salar complex within this area is approximately 160km². Surface exploration results indicate a high-grade lithium target in the northern portion of the salar complex extending for approximately 20 by 5 km with the combined lowest magnesium and sulphate impurities in the industry. Low impurities are a key factor in traditional low cost evaporation techniques for final lithium carbonate production. Hot springs on the property with elevated lithium content are part of the recharge system of the salar complex.
The technical team that discovered this unique salar complex is one of the most experienced in lithium salars, having discovered and led the technical work, including resource definition and full feasibility study that established the Cauchari lithium salar as the third largest lithium brine resource in the world.
Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company’s profile and at its website at www.neolitium.ca, including various pictures of ongoing work at the project.
Waldo Perez, Ph.D, P.Geo., the CEO and President of Neo Lithium Corp. is the Qualified Person who approved the scientific and technical disclosure in the news release.
Neither 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. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.
Forward-Looking Statements — Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to lithium brine grades at depth being consistent with surface results, the potential of the northern salar sediments for hosting brine, continued positive drilling results and the timing for planned resource estimation work, and that test results are indicative of future results . Generally, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.