Argentina Lithium Closes 1st Tranche of the Non-Brokered Private Placement
Argentina Lithium Closes 1st Tranche of the
Non-Brokered Private Placement
/NOT FOR DISTRIBUTION TO
THE UNITED STATES
/
VANCOUVER, BC
,
Aug. 11, 2022
/CNW/ -
Argentina Lithium & Energy Corp.
(TSXV: LIT) (FSE:
OAY3) (OTC: PNXLF)
, ("Argentina Lithium"
or the
"Company")
is pleased to announce it has
closed the 1
st
Tranche of the non-brokered private placement financing announced on
July 21, 2022
,
and increased on
August 9
and
August 11, 2022
through the issuance of 6,215,000 units ("
Units
") at
a subscription price of
$0.20
per Unit for aggregate gross proceeds to the Company of
$1,243,000
.
Each Unit consists of one common share and one transferrable common share purchase warrant (a
"
Warrant
"). Each Warrant will entitle the holder thereof to purchase one additional common share in
the capital of the Company at
$0.38
per share for two years from the date of issue, expiring on
August 11, 2024
.
The proceeds of the financing will be used in part to complete the acquisition of the Rinconcita II
mining concession area located on the Salar de Rincon in
Salta Province
,
Argentina
, from
provincially-owned company Recursos Energéticos y Mineros Salta S.A. The balance of the
proceeds will be used for general working capital and exploration on its properties in
Argentina
.
Finder's fees of
$36,260
are payable in cash on a portion of the private placement to parties at
arm's length to the Company. In addition, 181,300 non-transferable finder's warrants are issuable
(the "Finder's Warrants"). Each Finder's Warrant entitling a finder to purchase one common share at
a price of
$0.38
per share for two years from the date of issue, expiring on
August 11, 2024
.
Certain insiders of the Company participated in the Private Placement for
$20,000
in Units. Such
participation represents a related-party transaction under Multilateral Instrument 61-101 - Protection
of Minority Security Holders in Special Transactions ("
MI 61-101
"), but the transaction is exempt
from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither
the fair market value of the subject matter of the transaction, nor the consideration paid, exceed
25% of the Company's market capitalization.
This financing is subject to regulatory approval and all securities to be issued pursuant to the
financing are subject to a four-month hold period expiring on
December 11, 2022
.
ON BEHALF OF THE BOARD
"Nikolaos Cacos"
_____________________________________
Nikolaos Cacos
, President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE
Argentina Lithium & Energy Corp.
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For further information:
Corporate Communications, Tel: 1-604-687-1828, Toll-Free: 1-800-901-
0058, Email: [email protected]
CO: Argentina Lithium & Energy Corp.
CNW 16:04e 11-AUG-22