Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQX:LILIF) announced that it has entered into an agreement with Red Cloud Securities to act as lead agent and sole bookrunner for a “best efforts” private placement that could raise up to C$4.3 million.
The company plans to sell up to 26,060,607 units at a price of C$0.165 per unit.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at an exercise price of C$0.225 for a period of 36 months from the closing date.
Argentina Lithium has also granted the agents an option to sell up to an additional 3,030,303 units at the same offering price. The option may be exercised in whole or in part up to 48 hours prior to closing and would provide up to an additional C$500,000 in gross proceeds.
The company said it intends to use the net proceeds from the offering to fund exploration and advancement of its Rincon West lithium project in Argentina, as well as for working capital and general corporate purposes.