Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) announced it has closed the first tranche of a non-brokered private placement of up to nearly C$5 million.
The lithium company issued 6,108,504 units at a subscription price of $0.45 per unit in the first tranche, for aggregate gross proceeds of $2,748,826.80.
Each unit consists of one share and one warrant exercisable at $0.70 per share for three years from the date of issue, expiring on November 10, 2024.
READ: Argentina Lithium & Energy announces plans to raise nearly C$5M to advance projects in Argentina's Lithium Triangle
The proceeds of the financing will be used for general working capital and exploration on its properties in Argentina, according to the company.
Argentina Lithium paid finder's fees of $80,794.22 in cash on a portion of the private placement to parties at arm's length to the company. In addition, 179,543 non-transferable finder's warrants are issuable, entitling a finder to purchase one share at a price of $0.70 per share for three years from the date of issue.
Argentina Lithium & Energy is a junior explorer hoping to tap into what it believes will be significant demand for a cleaner, greener future.
The group is currently evaluating the next steps for its Salar de Incahuasi project in Catamarca province, as the Salar de Antofalla, which is around 150 kilometres long and up to 7 kilometres wide, and where the geology is similar to other salars in the Puna region where lithium and potash are found. Reported grades from the salar include 350 milligrams per litre (mg/l) lithium and 6,400 mg/l potash.
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