Ultra Lithium Inc said it has upsized the second tranche of its previously announced non-brokered private placement for aggregate gross proceeds to the company of up to C$8.6 million.
The second tranche will raise up to C$5 million from the sale of 27,777,778 units at a price of C$0.18 each, increased from the previously announced $0.15 per unit.
As part of the second tranche, Zangge Mining Co. Ltd - formerly Zangge Holdings Co. Ltd. - intends to increase its strategic investment in Ultra Lithium to C$4.14 million. Zangge will participate in the private placement through its wholly-owned subsidiary Zangge Mining Investment (Chengdu) Co. Ltd.
In a statement, Weiguo Lang, CEO of Ultra Lithium commented: "Zangge's agreement to increase their strategic investment reflects Zangge's strong commitment to Ultra Lithium. We look forward to a very productive relationship following Zangge's recent signing of an exclusive cooperation agreement for exploration and development of Ultra Lithium's 100% owned Laguna Verde Brine Lithium Project in Catamarca Province, Argentina."
READ: Ultra Lithium inks tie-up with Chinese giant Zangge to advance Laguna Verde brine asset in Argentina
Each unit will be comprised of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the company at a price of C$0.25 for a period of 12 months following the closing date of the offering.
The net proceeds from the sale of units will be used to fund the exploration of the company's properties in Argentina, Ontario and Nevada and for general working capital purposes.
Zangge Mining is a lithium and potassium producer listed on the Shenzhen Stock Exchange with a market capitalization of about US$8 billion, is headquartered in Golmud of Qinghai Province of China. Currently, Zangge has the mining rights of 724 square kilometres in Qarhan Brine Lake. It has been developing and utilizing the brine lake for 20 years and has become the biggest private potash producer in China with an annual production output of two million tons of potassium chloride.
Since as early as 2007, the core technical team of Zangge has been engaged in technology research and development and industrialized construction for brine lithium extraction and has positioned itself as an adsorption lithium extraction technology leader in the global lithium industry.
Ultra Lithium said the closing of the offering is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange. The unit shares, warrant shares and any common shares of the company that are issuable from any finder's warrants will be subject to a hold period of four months and one day in accordance with applicable securities laws. Finder's fees will be payable in accordance with the policies of the TSX Venture Exchange.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any US state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws.
Ultra Lithium is an exploration and development company with a focus on the acquisition and development of lithium, gold, and copper assets. The company holds a brine lithium property in Argentina, and hard rock spodumene type lithium properties at the Georgia Lake/Forgan Lake area in northwestern Ontario, Canada, and a brine lithium property in the Big Smoky Valley, Nevada, USA. The company also holds other gold and base metals properties in Argentina.
Contact the author at jon.hopkins@proactiveinvestors.com