One World Lithium Inc (CSE:OWLI) has announced a new financing to raise proceeds of up to C$2 million to advance work at its Salar del Diablo lithium brine property.
The junior company is issuing up to 20 million units priced at C$0.10 each, with each unit comprised of one share and one half-warrant exercisable at C$0.15 for a three-year period following the closing of the offering. The offering period is from May 5 to May 31.
READ: One World Lithium starts drilling DDH-3 borehole at its Salar del Diablo lithium brine project
Vancouver-based OWL said it expects about $750,000 of the proceeds to go towards drilling the southern and potentially middle portion of Salar del Diablo, with another $750,000 earmarked for initial lab tests, design of and completing engineer design work for a pilot plant for the company’s critical fluid separation technology. The remaining $500,000 will be working capital.
The company noted that it may elect to close the offering in one or more closings. A minimum subscription amount of $5,000 is required.
OWL has the right to own 100% of the separation technology, subject to a positive proof of concept program. Currently it has earned a 60% property interest in the Salar del Diablo property.
Once a Phase Three drill program is completed, OWL will earn an additional 20% property interest and has an option to purchase a further 10% property interest for a total of a 90% property interest in the 103,450 hectare project.
Salar del Diablo is located in the State of Baja California, Mexico.
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