Neo Lithium Corp. (CVE:NLC) said it has completed its previously announced 'bought deal' private placement of special warrants for gross proceeds of $30,195,000.
The company said it plans to use the net proceeds from the offering to fund development work at the 3Q Lithium Project located in Catamarca, Argentina and for working capital and general corporate purposes. More specifically, Neo Lithium intends to use the majority of the net proceeds to advance the construction of the concentration pond system at a commercial scale with a view to accelerating future production from the 3Q Project.
READ: Neo Lithium receives increased investment from Chinese shareholder CATL
The offering was led by Stifel GMP, as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters including Cormark Securities Inc., Canaccord Genuity Corp., Paradigm Capital Inc. and Eight Capital.
Under the offering, Neo Lithium issued 9,900,000 special warrants at a price of $3.05 each. Each special warrant, subject to a Penalty Provision and adjustments in certain circumstances, can be exercised for one common share in the capital of the company without any required action on the part of the holders, including payment of additional consideration.
As consideration for the underwriters' services in connection with the offering, the company paid a cash commission of 6% of the gross proceeds.
The special warrants and underlying shares are subject to a hold period under Canadian securities laws until June 11, 2021, and the offering has been conditionally approved by the TSX Venture Exchange but emains subject to its final acceptance.
On Tuesday, February 9, Neo Lithium announced that Contemporary Amperex Technology Co Limited (CATL), a Chinese battery manufacturer and technology company that specializes in lithium-ion batteries for electric vehicles and energy storage systems as well as battery management systems, said it intends to subscribe for 860,870 shares in Neo Lithium to maintain its 8% stake in the company.
The company said CATL will subscribe for the shares through a non-brokered private placement at C$3.05 each, providing Neo Lithium with gross proceeds of around C$2.62 million.
Neo Lithium is rapidly advancing its 100%-owned 3Q Project - a unique high-grade lithium brine lake and salar complex in Latin America's 'Lithium Triangle'. The project is located in Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 hectares including a salar complex of approximately 16,000 hectares.
Contact the author at jon.hopkins@proactiveinvestors.com