The Prospector News

International Lithium Closes Second Tranche of CAD$1,800,000 Private Placement

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

International Lithium Closes Second Tranche of CAD$1,800,000 Private Placement






International Lithium Corp. (TSX-V: ILC) announces that it has closed the second tranche of previously announced CAD$1,800,000 non-brokered private placement of secured convertible debentures to raise proceeds of CAD$900,000. This brings the total funds raised for this private placement to CAD$1,175,000. The Company expects a further final tranche closing.



The Debentures will mature on June 30, 2019 and bear interest at a rate of 15% per annum, payable quarterly. The debentureholders may convert at any time, all or a portion of the convertible loan principal into common shares of the Company at a price of $0.085 per common share.



The Debenture will be secured by a general security agreement against the Company’s assets. All private placement securities will be restricted from trading for a period of four months and one day from closing. The Company has the right to give notice of repayment of the convertible debenture, at any time after three months from the date of advance, although in this event the debenture holder has the right to convert into shares rather than receiving repayment.



CEO John Wisbey commented, “The board’s and my first priority when I took over as CEO on March 14 was to bring ILC’s accounts payable and commitments up to date. This was achieved with issuance of the CAD$1,180,000 2018 Series 1 convertible debentures and with the first closing of CAD$275,000 of the 2018 Series 2 convertible debentures. Now we have closed a further CAD$900,000 and in addition we already have further commitments for $235,000 of the final tranche which if honoured will bring the total in the Series 2 convertible debenture to CAD$1,410,000 out of CAD$1,800,000. This achieves my short-term goal of getting ILC ahead of the funding curve, and of course the aim now is to stay there. We hope that the confidence that new investors have had in the Company will be rewarded in due course thanks to this improved position.”



Directors and officers of the Company participated in CAD$212,500 of the Private Placement. The issuance of private placement securities to non-arms’ length parties constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. Because the Company’s shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(b). The Company did not file a material change report 21 days prior to the closing of the private placement because the Company wished to complete the Private Placement in a timely manner.



About International Lithium Corp.



International Lithium Corp. has a significant portfolio of projects, strong management, and a strategic partner and keystone investor, Jiangxi Ganfeng Lithium Co. Ltd., a leading China-based lithium product manufacturer.



The Company’s primary focus is the strategic stake in the Mariana lithium-potash brine project located within the renowned South American “Lithium Belt” that is the host to the vast majority of global lithium resources, reserves and production. The Mariana project strategically encompasses an entire mineral rich evaporite basin, totaling 160 square kilometres that ranks as one of the more prospective salars or ‘salt lakes’ in the region. Current ownership of the project is through a joint venture company, Litio Minera Argentina S. A., a private company registered in Argentina, ownership of which will be revised shortly to 82.754% by Ganfeng Lithium and 17.246% by ILC in order to reflect each party’s current JV interest. In addition, ILC has an option to acquire 10% in the Mariana project through a back-in right.



Complementing the Company’s lithium brine project are three rare metals pegmatite properties in Canada known as the Mavis, Raleigh, and Forgan projects, and the Avalonia project in Ireland, which encompasses an extensive 50km-long pegmatite belt.



The ownership of the Avalonia project is currently 55% GFL and 45% ILC. GFL have an option to earn an additional 24% by either incurring CDN$10 million expenditures on exploration activities or delivering a positive feasibility study on the project, at which time the ownership will be 79% GFL and 21% ILC.



The Mavis and Raleigh projects are under option to strategic partner Pioneer Resources Limited pursuant to which Pioneer can acquire up to a 51% interest in the projects.



The Mavis, Raleigh and Forgan projects together form the basis of the Company’s Upper Canada Lithium Pool designated to focus on acquiring numerous prospects with previously reported high concentrations of lithium in close proximity to existing infrastructure.



With the increasing demand for high tech rechargeable batteries used in vehicle propulsion technologies and portable electronics, lithium is paramount to tomorrow’s “green tech”, sustainable economy. By positioning itself with solid strategic partners and projects with significant resource potential, ILC aims to be one of the green tech resource developers of choice for investors and to continue to build value for its shareholders.



International Lithium Corp.’s mission is to find, explore and develop projects that have the potential to become world-class lithium, potash and rare metal deposits. A key goal is to become a well funded company to turn that aspiration into reality.


Posted June 18, 2018

Share this news article


Rock Tech Lithium Announces Assay Results from Ongoing Drill Program at Georgia Lake

Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (W... READ MORE

July 4, 2022

NioCorp Announces Closing of Up-Sized Private Placement for Gross Proceeds of C$4.8 Million

NioCorp Developments Ltd. (TSX: NB) (OTCQX: NIOBF) is pleased to... READ MORE

July 4, 2022

Galantas Gold Announces Exercise of Warrants

Galantas Gold Corporation (TSX-V:GAL ) (AIM: GAL) (OTCQX: GALKF) ... READ MORE

July 4, 2022

Mayfair Gold Closes Flow-Through Financing

Mayfair Gold Corp. (TSX-V: MFG) (OTCQX: MFGCF) today announced th... READ MORE

July 4, 2022

Montage Closes $20 Million Private Placement of Subscription Receipts

Montage Gold Corp.  (TSX-V: MAU) is pleased to announce the clos... READ MORE

June 30, 2022

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2022 The Prospector News