Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF). has increased the private placement amount announced on 3 November 2022, from $6 million to $9 million, consisting of 36,000,000 units at $0.25 per unit due to high investor demand.
Each unit will consist of one common share and one transferrable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the company at $0.40 per share for two years from the date of issue.
Proceeds of the financing will be used in part to complete the acquisition. The balance will be used for general working capital and exploration on its properties in Argentina.
READ: Argentina Lithium & Energy announces non-brokered private placement of up to 24,000,000 units for gross proceeds of $6M
Certain insiders of the company participated in the private placement.
Such participation represents a related-party transaction under the Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101), but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25% of the company's market capitalization.
The financing is subject to TSX Venture Exchange acceptance and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws.
A commission may be paid on a portion of the financing.
Argentina Lithium is focused on acquiring high-quality lithium projects in Argentina, and advancing them towards production to meet the growing global demand from the battery sector.
The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
Contact the author at jon.hopkins@proactiveinvestors.com