Lithium Chile Closes Its Previously Announced $0.70 Unit Financing and Welcomes Chengxin Lithium Group as Strategic Investor
LITHIUM CHILE CLOSES ITS PREVIOUSLY ANNOUNCED $0.70 UNIT FINANCING
AND WELCOMES CHENGXIN LITHIUM GROUP AS STRATEGIC INVESTOR
TSX Venture Exchange: LITH For Immediate Release
OTC-BB:LTMCF
CALGARY, ALBERTA, January 31, 2022 – Lithium Chile Inc. (“Lithium Chile” or the “Company”) is
pleased to announce that it has closed its recently announced non-brokered private placement
of units of the Company (“ Units”) at a price of $0. 70 per Unit, issuing 10,060,000 Units for
aggregate gross proceeds of $ 7,042,000 (the " Offering"). Each Unit is comprised of one (1)
common share of the Company (“Common Share”) and one (1) Common Share purchase warrant
(“Warrant”). Each Warrant is exercisable at $0.85 per Common Share for a period of 24 months
from the date of closing of the Offering. Completion of the Offering is subject to regulatory
approval including, but not limited to, the approval of the TSX Venture Exchange. The Common
Shares and Warrants issued under the Offering will be subject to a four month hold period from
the date of the closing of the Offering.
The Company welcomes Chengxin Lithium Group Co., Ltd. (“ Chengxin”), as a strategic investor,
purchasing $3,000,004 of the recent Offering through a wholly owned subsidiary. Chengxin is a
listed company in China with a market capitalization of 40 billion yuan ($8 billion Cdn) and as of
September 30th, 2021, their operating income for the first three quarters was 1.86 billion yuan
($371 million Cdn). Chengxin primarily engages in new energy materials business, from
spodumene mining to basic lithium products manufacturing and sales.
At present, Chengxin commands a total of 70.4kt lithium product capacity, and ranks No.2 in
China, with another 60kt capacity under long -term planning in Indonesia. To secure feedstock
supplies, Chengxin owns upstream resource in China and overseas. In China, Chengxin owns a
producing mine with raw spodumene throughput of 405kt/year and invested in a mine with an
inferred resource of 38.44 million tons. Overseas, Chengxin invested in a spodumene project with
40 mining claims in Zimbabwe and acquired 50% stake and operating right of the UT of Argentina
SDLA (Sal de Los Angeles) brine project in Salta province. Chengxin pays high attention to
resource investment globally and aspires to be a leading new energy material producer in the
world. For more information about Chengxin Lithium Group Co. Ltd., visit their website: Chengxin
Lithium Group Co., Ltd. (cxlithium.com)
President and CEO, Steve Cochrane shares, “Having Chengxin Lithium as a strategic investor is
yet another step forward for Lithium Chile. Their operational experience and expertise in the
lithium space is an incredible opportunity for our Company to advance our exploration and
development projects not only in Argentina but Chile as well. I look forward to a successful and
long-term collaboration with the Chengxin Lithium Group.”
The Company further announces an additional 90 -day contract with Clarkham Capital
(“Clarkham”) for its services in providing inv estor relations and digital marketing throughout
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Europe. Pursuant to the contract with Clarkham, the Company will pay €100,000 and grant an
option to purchase 150,000 Common Shares, with an exercise price of $0. 95 per share, subject
to vesting terms and exercisable for up to 5 years. The agreement with Clarkham and the option
are subject to the approval of the TSX Venture Exchange.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 6 9,200 hectares covering
sections of 10 salars and two laguna complexes in Chile and 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties, totaling 20,429 hectares, that are prospective for gold, silver
and copper. Exploration efforts are continuing on Lithium Chile’s Carmon a gold/silver/copper
property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-
BB under the symbol “LTMCF”.
To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO
via email: [email protected], Jose de Castro Alem, Argentina Manager via email
[email protected] or Michelle DeCecco, Vice President of Corporate Development via
email [email protected] or at 403-390-9095.
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.
NOT FOR RELEASE IN THE UNITED STATES OF AMERICA
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. Any
securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the "1933
Act") and may not be offered or sold in the United States or to or for the account or benefit of a U.S. person in the absence of
such registration or an exemption from the registration requirements of the 1933 Act and applicable U.S. state securities laws.
Forward Looking Statements
This news release may contain certain forward-looking information and forward-looking statements within the meaning of applicable securities
legislation (collectively "forward-looking statements"). Generally, forward-looking statements can be identified by the use of forward -looking
terminology such as "expected", "anticipated", "aims to", "plans to" or "intends to" or variations of such words and phrases or statements that
certain actions, events or results "will" occur. In particular, this news release contains forward-looking statements relating to, among other things:
the Company's ability to obtain necessary approvals for the Offering and the investor relations agreement with Clarkham from the TSX Venture
Exchange. Such forward-looking statements are based on various assumptions and factors that may prove to be incorrect, including, but not
limited to, factors and assumptions with respect to: the general stability of the economic and political environment in which the Company
operates; the timely receipt of required regulatory approvals; the ability of the Company to obtain future financing on acceptable terms; currency,
exchange and interest rates; operating costs; the success the Company will have in exploring its prospects and the results from such prospects.
You are cautioned that the foregoing list of material factors and assumptions is not exhaustive. Although the Company believes that the
assumptions and factors on which such fo rward-looking statements are based are reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no assurance that they will prove to be correct or that any of the events anticipated
by such forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive there from. Actual
results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: fluctuations in
market conditions, including securities markets ; economic factors; the risk that the new lithium exploration tender process does not yield the
anticipated benefits to the Company, if at all; the risk that the Offering will not b e completed as anticipated or at all, including the risk that the
Company will not receive the approvals necessary in connection with the Offering; and the impact of general economic conditions and the COVID-
19 pandemic. The Company does not undertake to u pdate any forward-looking statements herein, except as required by applicable securities
laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.