Nevada Lithium announces $3,25 million financing.
Nevada Lithium Resources Inc. (“Nevada Lithium” or the “Company”) (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) announce a proposed non-brokered private placement offering of subscription receipts for gross proceeds of a minimum of $3,250,000 with an over-allotment option to increase the private placement offering up to $5,000,000 (the “Concurrent Financing”).
The Concurrent Financing is being undertaken in connection with the Company’s previously announced consolidation of 100% ownership interest of the Bonnie Claire Lithium project (the “Bonnie Claire Project”), which is currently jointly held by Iconic Minerals Ltd. (“Iconic”) and Nevada Lithium, by way of a court approved plan of arrangement (the “Transaction”).
For further details regarding the Transaction, please refer to the press release of the Company dated January 9, 2023 available on SEDAR at www.sedar.com.
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Pursuant to the Concurrent Financing, Nevada Lithium will complete a non-brokered private placement offerings of subscription receipts of Nevada Lithium and 1396483 B.C. Ltd. (“Nevada MergeCo”), a wholly-owned subsidiary of Nevada Lithium, at a price of $0.125 per subscription receipt (the “Issue Price”).
Immediately prior to the completion of the Transaction, (i) each subscription receipt of Nevada Lithium will be converted into one unit (“Nevada Lithium Units”), consisting of one common share of Nevada Lithium (a “Nevada Share”) and one-half of one share purchase warrant of Nevada Lithium; and (ii) each subscription receipt of Nevada MergeCo shall be converted into one unit (“Nevada MergeCo Units”), consisting of one common share of Nevada MergeCo (a “Nevada MergeCo Share”) and one-half of one share purchase warrant of Nevada MergeCo.
Upon completion of the Transaction, each Nevada MergeCo Share and each share purchase warrant of Nevada MergeCo will be exchanged on a one-for-one basis for, respectively, Nevada Shares and share purchase warrants of Nevada Lithium.
Following completion of the Transaction, each whole share purchase warrant (each, a “Nevada Warrant”) will entitle the holder thereof to acquire an additional Nevada Share at a price of $0.20 until the date that is 24 months following the closing of the Transaction.
As part of the Concurrent Financing, Nevada Lithium will sell non-convertible promissory notes in the principal amount of up to $325,000, and it is anticipated that the noteholders will agree with Nevada Lithium to convert the aggregate principal and accrued interest into Nevada Lithium Units or Nevada MergeCo Units upon closing of the Transaction.
Nevada Lithium will pay certain eligible finders a cash commission equal to 7.0% of the gross proceeds sold by each finder, which will be payable upon closing of the Transaction. As additional consideration, the finders will be granted finder warrants equal to 7.0% of the number of subscription receipts sold by each finder. Each finder warrant will entitle the holder to acquire one Nevada Lithium Unit at the Issue Price for a period of 24 months following closing of the Transaction.
The net proceeds from the Concurrent Financing will be used for general corporate purposes following the completion of the Transaction.
Bonnie Claire Project
The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley.
Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
Qualified Persons
Darren L. Smith, M.Sc., P. Geo., Vice President of Exploration of the Company, and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the Company is actively advancing the Project towards Pre-Feasibility. Learn more: https://www.nvlithium.com/.
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Nevada Lithium Announces $3.25 Million Financing, VANCOUVER, BC, January 23, 2023
