LSC Lithium Announces Rights Offering for C$9.2 Million and Update on Strategic Review
16 August 2018 - 9:30PM
LSC Lithium Corporation (“
LSC” or together with
its subsidiaries, the “
Company”) (TSXV:LSC)
announced today that it plans to complete a rights offering (the
“
Rights Offering”) to the holders of common shares
of LSC (the “
Shares”) for gross proceeds of
approximately C$9.2 million.
Pursuant to the Rights Offering, each
shareholder as of the record date will be issued 0.16142 of one
right (each whole right, a “Right”) for each Share
held on the record date, entitling the holder to purchase one unit
of the Company (“Unit”) for each Right at a price
of C$0.40 per Unit. Each Unit shall be comprised of one Share and
one-half of one Share purchase warrant
(“Warrant”). Each whole Warrant will entitle the
holder to purchase one Share at a price of C$0.55 for a period of
18 months from closing of the Rights Offering.
The Rights will trade on the TSX Venture
Exchange (“TSXV”) and any shareholder can
subscribe not only for its pro rata share of the Rights Offering
but can take up additional shares which are unsubscribed for under
the terms set out in the circular.
The net proceeds from the planned Rights
Offering will be used by the Company to support ongoing development
activities at the Company’s three major projects, the
Pozuelos-Pastos Grandes Project (the “PPG
Project”), the Rio Grande Project and the Salinas Grandes
Project as well as for general working capital purposes. In
particular, a comprehensive development and engineering program on
the PPG Project is currently underway in support of completing a
Preliminary Economic Assessment by the end of Q4 2018. In addition,
funds will also be allocated to an exploration program on the Rio
Grande Project for the purpose of delivering an updated resource
statement and for further exploration work on LSC’s Salinas Grandes
Project with a view to completing a maiden mineral resource.
Under the terms of the Rights Offering, LSC is
planning to offer an aggregate amount of up to 22,988,000 Units and
each eligible holder will receive 0.16142 of one Right for each
Share held. The Company has standby commitments in place from
Regent Mercantile Holdings Limited and BMC Global Limited, both
significant shareholders of LSC, who will guarantee C$2.6 million
each so that at least C$5.2 million will be raised under the Rights
Offering. More details on the Rights Offering will be set out in a
rights offering notice and rights offering circular, both of which
will be available under LSC’s SEDAR profile at www.sedar.com. The
rights offering notice and accompanying rights certificate will be
mailed to eligible shareholders as at a record date to be
determined by the Company.
The Rights Offering will be conducted in Canada
only. However, certain approved eligible holders of Shares in
jurisdictions outside of Canada may be able to participate in the
Rights Offering. Information about holders of LSC’s common shares
that reside outside of Canada will be included in the rights
offering notice and rights offering circular.
The Rights Offering is subject to regulatory
approval, including the approval of the TSXV. The Company has
obtained conditional approval from the TSXV.
Update on Strategic Review
Further to its press release dated June 25,
2018, LSC is continuing to work with its financial advisors, BMO
Capital Markets and a wholly owned subsidiary of Haitong
International Securities Group Limited, to explore and review a
wide variety of strategic alternatives with the objective of
enhancing shareholder value. Currently LSC is in ongoing
discussions regarding a number of material alternative
transactions, including the possible sale of the Company as a whole
and the sale of some of LSC’s core projects. LSC is also pursuing
joint ventures of its projects. While LSC is continuing to work
diligently on these opportunities, it should be noted that LSC has
not entered into any definitive or binding arrangements and there
is no certainty that any of these discussions will lead to
definitive agreements. LSC will continue to provide updates on any
material developments respecting its strategic review.
ABOUT LSC LITHIUM
CORPORATION:
LSC Lithium has amassed a large portfolio of
prospective lithium rich salars and is focused on developing its
material projects: Pozuelos and Pastos Grandes Project, Rio Grande
Project and Salinas Grandes Project. All LSC tenements are located
in the “Lithium Triangle,” an area at the intersection of
Argentina, Bolivia, and Chile where the world’s most abundant
lithium brine deposits are found. LSC Lithium has a land package
portfolio totaling approximately 300,000 hectares, which represents
extensive lithium prospective salar holdings in Argentina.
For further information please
contact: LSC Lithium Corporation Ian Stalker, President
& Chief Executive Officer40 University Avenue, Suite
605Toronto, ON Canada M5J 1T1+416 306 8382Email:
info@lsclithium.comWeb: lsclithium.com
Forward-Looking Statements or
Information
Certain statements contained in this news
release constitute forward-looking information under applicable
securities law. These statements relate to future events or future
performance, including statements as to: the Company’s intention to
complete the Rights Offering and the timing thereof; the exercise
price of the rights offered under the Rights Offering; the
guaranteed minimum proceeds from the Rights Offering; the use of
proceeds of the Rights Offering; and the timing and outcome of the
strategic review process. The use of any of the words “could”,
“anticipate”, “intend”, “expect”, “believe”, “will”, “projected”,
“estimated” and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on LSC's current belief
or assumptions as to the outcome and timing of such future events.
Whether actual results and developments will conform with LSC's
expectations is subject to a number of risks and uncertainties
including factors underlying management's assumptions, such as
risks related to: the timely receipt of any required regulatory
approvals; title, permitting and regulatory risks; exploration and
the establishment of any resources or reserves on the LSC
properties; volatility in lithium prices and the market for
lithium; currency, exchange and interest rate fluctuations;
volatility in LSC’s share price; the requirement for significant
additional funds for development that may not be available; timing
and outcome of the strategic review process; changes in national
and local government legislation, including permitting and
licensing regimes and taxation policies and the enforcement
thereof; regulatory, political or economic developments in
Argentina or elsewhere; litigation; title, permit or license
disputes related to interests on any of the properties in which the
Company holds an interest; excessive cost escalation as well as
development, permitting, infrastructure, operating or technical
difficulties on any of the Company's properties; risks and hazards
associated with the business of development and mining on any of
the Company's properties. Actual future results may differ
materially. The forward-looking information contained in this
release is made as of the date hereof and LSC is not obligated to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws. Because of the risks,
uncertainties and assumptions contained herein, investors should
not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein. For more information, see the
Company's filing statement on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange Inc. nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
The TSX Venture Exchange Inc. has neither
approved nor disapproved the contents of this press release.
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