Ultra Lithium Inc. (TSX-V:ULI, OTCQB:ULTXF) has announced that due to strong investor demand it has amended its previously announced C$7,003,000 non-brokered private placement to include flow-through units.
The Vancouver, British Columbia-based exploration company with a focus on the acquisition and development of lithium, gold, and copper assets, said the net proceeds from the sale of units will be used to “fund the exploration of the company’s properties in Argentina, Canada and Nevada and for general working capital purposes”.
The company said it will raise C$7,003,000 from the sale of units of the company at a price of C$0.235 per unit, and flow-through units of the company (FT units) at a price of C$0.25 per FT unit for gross proceeds of up to C$2 million.
Each unit will be made up of one common share and one half of one common share purchase warrant. Each FT unit will consist of one common share to be issued as a “flow-through share” and one half of one warrant. Each warrant will entitle the holder to buy one non-flow-through share at a price of C$0.30 for a period of 12 months after the closing date of the offering.
Red Cloud Securities Inc is acting as a finder in connection with a portion of the offering, said the company, and finder’s fees will be paid in line with the policies of the TSX Venture Exchange.
As part of the offering, China's Yahua Group plans to make a strategic investment of C$5 million in units. Founded in 1952, Yahua is one of the earliest chemical companies established after the founding of the People’s Republic of China. The Chinese public limited giant currently focuses on the lithium and civil explosive industry.
Ultra Lithium noted that the offering is subject to getting all the standard regulatory approvals. The unit shares, warrant shares and any common shares that are issuable from any finder’s warrants will be subject to a hold period of four months and one day.
Ultra Lithium holds a brine lithium property in Argentina, hard rock spodumene type lithium properties in northwestern Ontario, and a brine lithium property in the Big Smoky Valley, Nevada. The company also holds other gold and base metals properties in Argentina.
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