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Western Lithium USA (TSX:WLC,OTCQX:WLCDF) has entered an agreement for a non-brokered private placement with an affiliate of Bangchak Petroleum Public Company Limited. Initially for $5 million, the agreement will be funded in two tranches.
Western Lithium USA (TSX:WLC,OTCQX:WLCDF) has entered an agreement for a non-brokered private placement with an affiliate of Bangchak Petroleum Public Company Limited. Initially for $5 million, the agreement will be funded in two tranches.
As quoted in the press release:
Bangchak is a public company in Thailand, whose major shareholders are the State of Thailand, Ministry of Finance, Vayupak Fund 1 and Social Security Fund. Bangchak operates over 1,000 service gas stations, and is a progressive oil refiner, based in Thailand, that has a vision to operate a petroleum company with a green energy outlook. Bangchak was an industry leader in 2002 when it first launched its biofuel products. Since 2013, Bangchak has entered the solar power energy generation business and has increased its installed solar power capacity to 118 MW. Bangchak plans to go to 500 MW of electrical generation capacity from renewable energy by 2020. Bangchak has recognized lithium’s role as a key raw material to supply the growth of lithium-ion batteries used for electric and hybrid vehicles, stationary storage and consumer electronics.
The initial tranche of US$1.5 million will be funded pursuant to the issuance of 2,676,214 subscription receipts at a price of CDN$0.70 that will each be convertible into one common share of the Company following satisfaction of all Toronto Stock Exchange (“TSX”) listing requirements, including shareholder approval. The second tranche of US$3.5 million will be funded pursuant to the issuance of 6,244,500 subscription receipts at a price of CDN$0.70 that will each be convertible into one common share of the Company following satisfaction of certain conditions, including, but not limited to, satisfaction of all TSX listing requirements, including shareholder approval and completion of trial runs for the production of high purity lithium carbonate at its demonstration plant in Germany in the fall of 2015. The gross proceeds from the issuance of the first tranche and second tranche subscription receipts will be deposited and held in escrow and will be released concurrent with the conversion of the subscription receipts.
Western Lithium CEO, Jay Chmelauskas, said:
When we visited Bangchak’s refinery and solar panel operations in Thailand, we recognized their progressive outlook to pursue alternative energy projects and operational excellence. We welcome a long term shareholder, with similar vision as Western Lithium to advance better energy solutions, that intends to provide additional capital to our Company as we develop our businesses.
Click here to read the Western Lithium USA (TSX:WLC,OTCQX:WLCDF) press release
