Ultra Lithium Inc said it has closed the first tranche of its previously-announced private placement, raising gross proceeds of C$1,074,699.
The lithium properties developer noted that proceeds from the offering will be used to fund the exploration of its Argentine and Canadian properties and for general working capital purposes.
Ultra Lithium said it sold 4,220,000 flow-through (FT) company units, at a price of C$0.25 per FT unit, for gross proceeds of C$1,055,000, along with 83,829 non-flow-through (NFT) company units, at a price of C$0.235 per NFT unit, for gross proceeds of C$19,699.82.
READ: Ultra Lithium amends private placement to add flow-through component thanks to strong investor demand
Each FT unit consists of one company common share plus one half of one common share purchase warrant, while each NFT unit consists of one Ultra Lithium common share plus one half of one warrant.
Each warrant will entitle the holder to purchase one company common share at a price of C$0.30 per share for a period of 12 months from the date of issue.
Finder’s fees of C$74,528.99 were paid and 298,468 finder’s warrants were issued in connection with the private placement, with each finder’s warrant entitling the holder to purchase one Ultra Lithium common share at an exercise price of $0.30 for a period of 12 months from the date of issuance.
All securities issued in connection with the private placement are subject to a statutory hold period expiring four months and one day from issuance, while also being subject to final approval by the TSX Venture Exchange.
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.
Contact Sean at sean@proactiveinvestors.com