Rock Tech Closes First Tranche of Brokered Private Placement
(via Thenewswire.ca)
Vancouver, British Columbia, Canada, May 20, 2011 - Rock Tech Lithium Inc. (TSX-Venture: RCK; Frankfurt: RJIA (the "Company" or "Rock Tech"), further to its previous announcement on April 6, 2011, is pleased to announce the closing of the first tranche of its brokered private placement (the "Offering") consisting of 3,883,400 flow-through units of the Company at a price of $0.30 per unit and 10,460,000 non-flow-through units of the Company at a price of $0.25 per unit for aggregate gross proceeds of $3,780,020.
Each flow-through unit consists of one flow-through common share of the Company and one half of one share purchase warrant. Each non-flow-through unit consists of one non-flow-through common share of the Company and one half of one share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $0.60 per share for a period of 24 months, expiring at 4:30pm (Pacific Daylight Time, GMT-8) on May 19, 2013.
Mackie Research Capital Corporation acted as lead agent along with German based Silvia Quandt & Cie. AG acting as tight agent for German based biw Bank on behalf of a syndicate of agents (the "Agents") in connection with the Offering. The Agents received an aggregate cash commission equal to 7% of the gross proceeds and broker warrants entitling the holders to acquire an aggregate of 1,242,038 units of the Company at an exercise price of $0.30 per unit until 4:30 pm (Pacific Daylight Time, GMT-8) on May 19, 2013. Such units issued under the broker's warrants consist of one common share of the Company and one half of one share purchase warrant, with each full warrant entitling the holder thereof to purchase one additional share of the Company at a price of $0.60 per share for a period of 24 months, expiring at 4:30 PM (Pacific Daylight Time, GMT-8) on May 19, 2013.
All securities issued in connection with the Offering are subject to a four month and a day hold period until September 20, 2011.
Rock Tech expects to close on the second tranche of the financing announced on April 6, 2011 in a timely manner.
The proceeds of the Offering will be used for the second phase of the Company's exploration program at Georgia Lake entailing 11,000 metres of diamond core drilling and initiation of a Preliminary Economic Assessment, for conducting geophysical work and surface exploration at the Company's two Quebec lithium projects (the Kapiwak project in the James Bay Region and the Lacorne project in the Val d'Or Region) and for general working capital purposes.
On behalf of the Board of Directors,
"Eunho Lee"
President, CEO and Director
For further information please contact:
Brad Barnett
Controller, Senior Manager-Corporate Affairs and Corporate Secretary
Phone: (604) 688-1140 | Facsimile: (604) 688-1173
E-mail and website: info@rocktechlithium.com | www.rocktechlithium.com
Disclaimer:
Neither the 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. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
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