All dollar amounts are in U.S. dollars unless
otherwise indicated.
TORONTO, July 28, 2017 /CNW/ - LSC Lithium Corporation
("LSC" or together with its subsidiaries, the "Company") (TSXV:LSC)
is pleased to announce that it has engaged GMP Securities L.P.
("GMP") to act as broker with respect to a proposed "commercially
reasonable best efforts" private placement of up to CAD
$20 million of common shares (the
"Offering"). Pricing for the Offering will be determined in the
context of the market.
LSC is undertaking the Offering in order to fund an accelerated
and expanded exploration program on its portfolio of high-quality
lithium brine projects in Northern
Argentina and to increase the cash position of LSC following
the payment of the aggregate principal amount of $14,275,816 (plus all accrued interest thereon)
by LSC to its secured lenders who did not exercise their conversion
rights in connection with the LitheA Inc. acquisition announced in
the Company's June 30, 2017 press
release.
The funds raised in the Offering will allow LSC to further
pursue the promising exploration results to date by the
implementation of an accelerated and expanded exploration program
for 2017. LSC has currently initiated a major exploration program
on its Salar de Pozuelos property
("Pozuelos"), following up on the success of its initial
exploration (see LSC press release dated April 10, 2017).
As announced on July
25th, the current program incorporates 15 holes
to test all depths of Pozuelos and collect brine and Relative Brine
Release Capacity (RBRC) samples. Drilling for the current program
commenced the week of July
14th in the south end of Pozuelos and the Company
awaits assays and other test results. LSC is encouraged by the
drilling results to date, which indicate the potential for high
porosity formations.
A drilling program on LSC's tenements on nearby Salar Pastos
Grandes is scheduled to start as soon as permits are received,
which are expected by the beginning of August. This program will
complement the work on Pozuelos. Other exploration programs are
scheduled to start in early August on LSC's projects at Salar Rio
Grande and Salar Jama. In addition,
LSC anticipates receiving permits to undertake initial exploration
work on its Salar Salinas Grandes
tenements in Salta Province in late
Q3/17.
GMP will be paid a broker's fee equal to 6% of the gross
proceeds of the Offering and receive broker's warrants equal to 6%
of the number of common shares sold pursuant to the Offering in
compensation for acting as the broker in connection with the
Offering.
The common shares sold pursuant to the Offering will be subject
to a 4 month hold period under applicable securities laws.
Operational Changes
To better organise LSC activities to focus on exploration, the
delivery of resource reports in conformance with NI 43-101
standards, and to proceed to a feasibility stage at Pozuelos,
Pastos Grandes, Rio Grande, Jama and Salinas Grandes LSC is
relocating to its own independent premises in Salta, Argentina and intends to staff up to a work
force of approximately 28 persons in order to simultaneously carry
out exploration in multiple areas.
The physical separation is intended to not only focus LSC's
activities on its exploration objectives but to free up Enirgi
Group Corporation and its subsidiary, ADY Resources Limited,
Sucursal Argentina, to advance its demonstration lithium carbonate
processing plant at Salar del Rincón to a productive level of
output while at the same time focus on financing and building its
full scale production facility.
Qualified Person/Data Verification
The scientific and technical information included in this press
release is based upon information prepared and approved by
Donald H. Hains, P.Geo. Donald H. Hains is a qualified person, as
defined in NI 43-101 and is independent of LSC and LitheA.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium has amassed a large portfolio of prospective lithium
rich salars and is focused on developing its tenements located in
five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes
and Jama. 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.
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information. These statements relate to future
events or future performance, including statements as to the
following: the Offering and its completion, LSC's intentions
regarding an exploration program for the Pozuelos Property and the
timing and ability to advance the Pozuelos Property to feasibility
study level. The use of any of the words "could", "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
completion and pricing of the Offering, the operations changes
described in this press release, exploration and the
establishment of resources and reserves on the Pozuelos Property or
other LSC properties; the application and future licensing of new
technologies; the risks around timing, permitting, funding and
construction of a regional processing facility at the Salar del
Rincón by Enirgi Group and the ability of LSC to fast-track
production from its own properties by supplying brine to such a
facility; risks relating to proposed acquisitions; volatility in
lithium prices and the market for lithium; exchange rate
fluctuations; volatility in LSC's share price; the requirement for
significant additional funds for development that may not be
available; 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.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
SOURCE LSC Lithium Corporation