Argentina Lithium Closes Non-Brokered Private Placement and Acquisition of Rinconcita II at Salar de Rincon
Argentina Lithium Closes Non-Brokered
Private Placement and Acquisition of
Rinconcita II at Salar de Rincon
/NOT FOR DISTRIBUTION TO
THE UNITED STATES
/
TSX Venture Exchange (TSX-V):
LIT
Frankfurt Stock Exchange (FSE):
OAY3
OTCQB Venture Market (OTC):
PNXLF
VANCOUVER, BC
,
Aug. 25, 2022
/CNW/ -
Argentina Lithium & Energy Corp.
(TSXV: LIT) (FSE:
OAY3) (OTC: PNXLF)
, ("Argentina Lithium" or the "Company")
announces that it has closed the
private placement announced on
July 21, 2022
and increased on
August 9
and
August 11, 2022
,
through the issuance of 10,415,000 Units in this 2
nd
and final tranche (the "Final Tranche") for
aggregate gross proceeds to the Company of
$2,083,000
. In total, the Company has closed on
16,630,000 Units for aggregate gross proceeds of
$3,326,000
. The Company has also closed the
acquisition of the Rinconcita II mining concession area ("Rinconcita II") located on the Salar de
Rincon in
Salta Province
,
Argentina
from provincially-owned company Recursos Energéticos y
Mineros Salta S.A. ("REMSA"), as previously announced by the Company on
July 21, 2022
.
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 25, 2024
for this Final Tranche.
No Finder's Fees were paid in the Final Tranche. In total,
$36,260
were paid 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 were issued (the "Finder's Warrants"). Each Finder's Warrant entitles
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 25, 2024
.
There were no insiders who participated in the Final Tranche, however, 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.
A new Control Person on a diluted basis was created in this tranche. This individual has agreed that
he will not exercise any of the Warrants if such exercise will result in his beneficially owning or having
control or direction over that number of voting securities of the Company which is 20% or greater of
the total issued and outstanding voting securities of the Company, immediately after giving effect to
such exercise, or result in the undersigned becoming a "Control Person" as defined in the policies of
the TSX Venture Exchange (the "Exchange").
This financing is subject to regulatory approval and all securities to be issued pursuant to this Final
Tranche of the financing are subject to a four-month hold period expiring on
December 27, 2022
.
The proceeds of the financing were used, in part, to complete the acquisition of Rinconcita II from
REMSA. The balance of the proceeds will be used for general working capital and exploration on its
properties in
Argentina
. In consideration for the acquisition of Rinconcita II, the Company made a
payment to REMSA of
USD$2,500,000
and granted REMSA a 3% net smelter return of mineral and
refined products sourced from Rinconcita II over its production life, if the property advances to the
production stage. The Company's acquisition of Rinconcita II is subject to the final acceptance of the
Exchange which should be available upon filing of a signed copy of the agreement with the
Exchange.
About Argentina Lithium
Argentina Lithium & Energy Corp is focused on acquiring high quality lithium projects in
Argentina
and
advancing them towards production in order to meet the growing global demand from the battery
sector. The management group has a long history of success in the resource sector of
Argentina
and has assembled a first rate team of experts to acquire and advance the best lithium properties in
the world renowned "Lithium Triangle". The Company is a member of the
Grosso
Group, a resource
management group that has pioneered exploration in
Argentina
since 1993.
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.
The securities being offered have not been, nor will they be registered under the United States
Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within
the United States
or to, or for the account or benefit of, U.S. persons absent U.S. federal and state
registration or an applicable exemption from the U.S. registration requirements. This release does
not constitute an offer for sale of securities in
the United States
.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements that are based on the Company's current
expectations and estimates. Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate"
and other similar words or statements that certain events or conditions "may" or "will" occur and
include statements regarding regulatory acceptance of the Company's private placement and
acquisition of Rinconcita II and statements regarding the Company's proposed use of proceeds of
the private placement. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to differ materially from
estimated or anticipated events or results implied or expressed in such forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims any intent or obligation to update
any forward-looking statement, whether as a result of new information, future
events or results or
otherwise. Forward-looking statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the inherent uncertainty therein.
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 17:07e 25-AUG-22