LSC Lithium Announces Rights Offering Closing
TORONTO, Oct. 02, 2018 - LSC Lithium Corp. (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce the closing of its rights offering (the “Rights Offering”) announced on August 16, 2018. A total of 19,816,847 rights were subscribed for gross proceeds of $7,926,738.80.
Ian Stalker, President and CEO, stated, “We are pleased with the outcome of the Rights Offering which has exceeded our expectations, raising well over the minimum offering of C$5.2 million. The proceeds of the Rights Offering will allow LSC to continue to progress its Pozuelos-Pastos Grande Project (the completion of the PEA is expected this quarter), and to continue to work on its other lithium assets in Argentina. We express our thanks to all of the shareholders who participated.”
The net proceeds will be used by the Company to support ongoing development activities at the Company’s three major projects, the Pozuelos-Pastos Grandes Project (the “PPG Project”), the Rio Grande Project and the Salinas Grandes Project as well as for general working capital purposes. In particular, a comprehensive development and engineering program on the PPG Project is currently underway in support of completing a Preliminary Economic Assessment by the end of Q4 2018.
LSC offered each shareholder resident in Canada and eligible holders in the US and other jurisdictions 0.16142 of one right (each whole right, a “Right”) for each Share held on August 27, 2018, entitling the holder to purchase one unit of the Company (“Unit”) for each Right at a price of C$0.40 per Unit. Each Unit is comprised of one Share and one-half of one Share purchase warrant (“Warrant”). Each whole Warrant entitles the holder to purchase one Share at a price of C$0.55 for a period of 18 months from closing of the Rights Offering.
As previously announced, BMC Global Limited (“BMC”) and Regent Mercantile Holdings Limited (“Regent”) entered into standby purchase agreements with LSC, pursuant to which they each agreed to purchase up to $2.6 million in Units. In connection with such agreements, BMC and Regent acquired 3,698,128 and 678,856 Units, respectively, pursuant to their basic subscription privileges, and 2,801,872 Units and 4,550,149 Units, respectively, pursuant to their additional subscription privileges.
Following completion of the Rights Offering, there are now 162,220,821 common shares issued and outstanding.
ABOUT LSC Lithium Corp.:
LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its material projects: Pozuelos and Pastos Grandes Project, Rio Grande Project and Salinas Grandes Project. All LSC tenements are located in the “Lithium Triangle,” an area at the intersection of Argentina, Bolivia, and Chile where the world’s most abundant lithium brine deposits are found. LSC Lithium has a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.
For further information please contact:
LSC Lithium Corp.
Ian Stalker, President & Chief Executive Officer
40 University Avenue, Suite 605
Toronto, ON Canada M5J 1T1
+416 306 8380
Email: info@lsclithium.com
Web: lsclithium.com
Forward-Looking Statements or Information
Certain statements contained in this news release constitute forward-looking information under applicable securities law. These statements relate to future events or future performance, including statements as to: the use of proceeds of the Rights Offering and the completion of the Company’s corporate objectives, including the completion of a preliminary economic assessment. The use of any of the words “could”, “anticipate”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to: the timely receipt of any required regulatory approvals; title, permitting and regulatory risks; exploration and the establishment of any resources or reserves on the LSC properties; volatility in lithium prices and the market for lithium; currency, exchange and interest rate fluctuations; volatility in LSC’s share price; the requirement for significant additional funds for development that may not be available; timing and outcome of the strategic review process; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information, see the Company's filing statement on SEDAR at www.sedar.com.
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The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.