Alset Energy Announces Amendment to Financing Terms, Outlines Work Program in Mexico

THUNDER BAY, ONTARIO, Sep 21, 2016 (Marketwired via COMTEX) — THUNDER BAY, ONTARIO–(Marketwired – Sep 21, 2016) – Alset Energy Corp. (TSXV:ION) announces an amendment to the terms of its previously announced private placement (news release dated July 29, 2016) (the “Offering”). The Company will now raise up to $1 million on the following basis:
Each flow through unit (“FT”) will be issued at $0.30 and will consist of one (1) flow through common share and one common share purchase warrant, each common share purchase warrant being exercisable at $0.40 cents for 24 months. Flow through funds will be used to advance the Wisa Lake spodumene and Champion Graphite projects in Ontario.
Each non flow-through unit (“NFT”) will be issued at $0.25 and will consist of one (1) common share and one (1) common share purchase warrant, each exercisable at $0.30 cents for 24 months.
The common shares comprising the FT and NFT units and the common shares issuable upon exercise of the common share purchase warrants will be subject to a four (4) month hold period commencing on the closing date, being the date of issuance of the units. The Company will pay reasonable expenses and fees incurred in connection with the Offering and agents or finders may, in accordance with TSX Venture Exchange policy, be paid a negotiated cash fee as a percentage of the gross proceeds raised in the Offering. The proposed financing and associated terms are subject to TSX Venture Exchange approval.
Tim Oliver, President of Alset commented: “After we announced the initial private placement we took another look at our work programs. We’ve now refined our plans and have revised the costs for the screening and resource definition drilling downwards. A combination of low drilling costs and the decision to limit resource definition drilling to the three most attractive salars, should allow a lower cost program than we initially planned for. We also discovered some valuable new information regarding the extensive inventory of sediment samples from prior investigations, and the history of commercial salt production from pumped brine in three of the seven salars. If our programs are successful, we hope to come back to the market for another raise at a higher price than the current private placement.”
The Company believes that the proceeds from the revised financing will be sufficient to fund all of the planned work including:
completion of the permitting for the drilling program;
the drilling program itself;
a process chemistry assessment of the technical feasibility of correlating brine quality with the chemical make-up of residue remaining within the sample soil voids after drying. Alset possesses thousand of sediment samples. If the correlation is possible, it will provide a valuable tool for assessing the chemical nature of the brine;
a concept assessment for refurbishing retired commercial salt production wells in three salars: Caliguey, Saldivar and Colorada (The Colorada salt works were active just four years ago). The purpose will be to determine the feasibility of conducting pump tests and pilot evaporation tests using existing infrastructure. The assessment will include research into the technical feasibility of well refurbishment, determination of salt production facility ownership and owner’s willingness to assist with the program, permitting requirements, and coordination with local communities and landowners.
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