Neo Lithium Corp. is pleased to announce the closing of the previously announced equity investment by Contemporary Amperex Technology Co. Limited whereby CATL, through a subsidiary controlled by CATL, subscribed for 10,217,503 common shares of Neo Lithium at a price of C$0.84 per Common Share for gross proceeds to Neo Lithium of C$8,582,702 and representing approximately 8% of issued and outstanding shares of the …
Neo Lithium Corp. (” Neo Lithium ” or the ” Company “) (TSXV: NLC) (OTCQX: NTTHF) (FSE: NE2) is pleased to announce the closing of the previously announced equity investment by Contemporary Amperex Technology Co. Limited (SZSE: 300750) (” CATL “), whereby CATL, through a subsidiary controlled by CATL, subscribed for 10,217,503 common shares (the ” Common Shares “) of Neo Lithium at a price of C$0.84 per Common Share (the ” Issue Price “) for gross proceeds to Neo Lithium of C$8,582,702 and representing approximately 8% of issued and outstanding shares of the Company. The Common Shares issued to CATL are subject to a 4-month statutory hold period expiring on April 15, 2021 . With the proceeds of the equity investment from CATL, the Company has strong net cash position of approximately C$35 million . For more details, please refer to the Company’s press release dated September 14, 2020 .
Following the TSXV’s review and recommendation of the current trading price relative to the Issue Price and time lapsed since announcing CATL’s intention to invest in the Company, the insider group has not been permitted to participate in the concurrent financing at the Issue Price.
“The closing of the CATL strategic investment validates the quality of our 3Q project and the capabilities of our management team. It further strengthens our long-term commitment and focus on our Project as we work together with CATL to bring 3Q into full development by building a comprehensive financing plan” commented Constantine Karayannopoulos , Chairman of Neo Lithium. “On behalf of the board, I am delighted and honoured to formally welcome CATL as a new shareholder and we look forward to working with them to advance the 3Q Project into construction and ultimate production.”
CATL is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales in battery systems for new energy vehicles and energy storage systems. In 2019, the company’s EV battery sales volume reached 40.25 GWh worldwide, and making it the world leader in annual EV battery consumption volume (source SNE Research).
For more information, please visit http://www.catlbattery.com .
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.
The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.
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.neolithium.ca , including various pictures of ongoing work at the project.
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.
Cautionary Note Regarding 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 for resource expansion at depth, the potential of the northern salar sediments, and deeper sediments, for hosting brine, the ability to proceed to scoping studies quickly, proceeding with continued work for additional economic studies the potential for production expansion in the Company’s assessment of the economic potential of the 3Q Project, that test results are indicative of future results, and the additional of additional independent directors. 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, competition for experienced directors in the junior mineral exploration and development sector, 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.
SOURCE Neo Lithium Corp.
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