United Lithium Corp (CSE:ULTH) said it has completed its previously announced non-brokered private placement and has issued 50,000,000 units of the company at a price of $0.14 each for gross proceeds of C$7 million.
Each unit in the offering is comprised of one common share and one share purchase warrant entitling the holder to acquire one additional share at a price of C$0.25 until March 6, 2025.
The company said it intends to use the net proceeds raised from the offering for exploration of its properties and for general working capital.
READ: United Lithium appoints Scott Eldridge as new CEO; announces C$7M private placement
All securities issued in the offering are subject to restrictions on resale until July 7, 2023, in accordance with applicable securities laws. No finders’ fees or commissions were paid in connection with the completion of the offering.
The offering included participation by the company’s chief executive officer in the amount of $310,000. Such participation constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
Board Appointment
United Lithium also announced the appointment of Iain Scarr to its board of directors effective immediately.
Scarr is replacing Mark Ireton, who has resigned as a director of the company to focus on other ventures. The United Lithium board of directors thanked Ireton for his service to the company.
United Lithium noted that during his 29-year tenure with Rio Tinto, including his most recent position as Commercial Director and VP Exploration, Industrial Minerals Division, Scarr was responsible for multiple mineral discoveries in North and South America and Africa. Under that title he made his first foray into lithium, working on initial testing and commercialization activities for the Jadar lithium-borosilicate resource in Serbia.
Following on from his work with Rio Tinto, Scarr founded IMEX Consultants, an industrial minerals consultancy that operates across the entire value chain, from mineral exploration to mine and refinery development and commercialization specializing in lithium, boron minerals, potash and sodium alkali resources.
Adapting quickly after his time with Rio Tinto, Scarr held a senior role with Lithium One Inc, where he was responsible for bringing the Sal de Vida lithium brine project in Argentina through feasibility where he remained with Galaxy Resources. Thereafter, he held a senior role developing the Rincon project with Enirgi Group Corp. His third success in Argentina was the development of the Pastos Grandes project with Millennial Lithium Corp.
United Lithium is an exploration & development company energized by the global demand for lithium. The company is targeting lithium projects in politically safe jurisdictions with advanced infrastructure that allows for rapid and cost-effective exploration, development and production opportunities.
Contact the author at jon.hopkins@proactiveinvestors.com