Ultra Lithium Inc said it has closed its non-brokered private placement issuing 2,156,278 units at a price of C$0.15 per unit - a premium of 50% over current market - for gross proceeds of C$323,442.
The company said the net proceeds from the sale of units will be used for general working capital purposes.
Each unit in the private placement 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 for a period of 24 months. Each warrant will be exercisable for $0.25 for the first 12 months following the closing date of the placement and at $0.35 thereafter.
READ: Ultra Lithium announces new financing to help advance global portfolio of mineral assets
In connection with the private placement the company will pay finder's fees of C$8,849 cash and 58,995 finder's warrants comprised of C$3,424 cash and 22,828 finder's warrants to Red Cloud Securities Inc, C$2,625 cash and 17,500 finder's warrants to Cormel Capital Sarl and C$2,800 cash and 18,667 finder's warrants to Jemini1 Finance Inc. Each finder's warrant will be exercisable for a period of 24 months, at $0.25 for the first 12 months following the closing date of the private placement and at $0.35 thereafter.
The closing of the private placement 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.
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, 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