Neo Lithium Corp (CVE:NLC) (OTCQX:NTTHF) (FRA:NE2) said it has completed the previously-announced C$2.6 million equity investment from China’s Contemporary Amperex Technology Co. Limited (CATL), consisting of 860,870 Neo Lithium common shares at a price of C$3.05 per share.
Neo Lithium said the net proceeds improves the company’s already strong cash position to develop its 3Q Lithium Project in Argentina, adding that the funds will also be used for working capital and general corporate purposes.
CATL subscribed to the offering in order to maintain its 8% pro rata equity interest in Neo Lithium, under the terms of an investor rights agreement between the two companies, and was triggered as a result of Neo Lithium closing a bought deal private placement financing of special warrants of the company on February 10.
READ: Neo Lithium advancing one of the world's best lithium brine projects towards final feasibility
CATL is 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.
Neo Lithium’s flagship Tres Quebradas project in Argentina, also known as the '3Q' project, lies in the southern end of what is known as the ‘Lithium Triangle’, covering 35,000 hectares.
3Q is one of the top three highest-grade lithium projects in the world and is the seventh-largest brine project on the planet with significant exploration potential.
The project has proven and probable reserves of 1.3 million tonnes of lithium carbonate (LCE) with 790 milligrams per litre (mg/l) of lithium and a report last year highlighted its strong economics and 35-year mine life. In terms of resources, at the overall deposit area, using a 400 mg/l cut-off, the 3Q project has over four million tonnes of LCE in the higher confidence measured and indicated (M&I) category.
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