Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) said it has upped its private placement amount once again due to high investor demand.
The Vancouver-based exploration company boosted the offering to just over C$3.3 million, up from the nearly $3.1 million it announced earlier this month and the $2.5 million figure it originally announced in July 2022.
The offering will now consist of 16.63 million units priced at $0.20 per unit.
READ: Argentina Lithium & Energy raises private placement to $3M in response to higher investor demand
Under the terms of the offering, each unit comprises one common share and one transferrable common share purchase warrant, with each warrant entitling its holder to purchase one additional common share at a price of $0.38 for a period of two years.
Proceeds from the financing will go towards the company’s lithium projects in Argentina and advancing them towards production in order to meet the growing global demand from the battery sector.
First tranche raises over $1.2M
Argentina Lithium closed the first tranche of the financing, issuing 6,215,000 units at a subscription price of $0.20 per unit for aggregate gross proceeds of $1,243,000.
Finder's fees of $36,260 are payable in cash on a portion of the private placement to arm’s length parties. In addition, 181,300 non-transferable finder's warrants are issuable under the same terms as normal warrants.
Certain insiders of the company participated in the private placement for $20,000 in units.
Argentina Lithium said that the proceeds of the financing will be used in part to complete the acquisition of the Rinconcita II mining concession area located on the Salar de Rincon in Salta province, Argentina, from provincially-owned company Recursos Energeticos y Mineros Salta SA. The balance of the proceeds will be used for general working capital and exploration on its properties in Argentina.
--Updated with first tranche details--
Contact Angela at angela@proactiveinvestors.com
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