Equity sold to finance acquisition of interest in Maricunga Project
By Devika Patel
Knoxville, Tenn., April 8 - Li3 Energy, Inc. settled a $2 million initial tranche of a $4.9 million private placement of units on April 7, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal is being conducted to fund the company's acquisition of a 60% interest in the Maricunga Project in northern Chile and priced on April 4.
The company is selling units of one common share and one half-share warrant at $0.27 per unit. It sold 7,406,666 units in the first closing.
Each whole warrant is exercisable at $0.40 for three years. The strike price is a 17.65% premium to the April 1 closing share price of C$0.34.
Gottbetter Capital Markets, LLC is the lead placement agent; Rodman & Renshaw, LLC is co-placement agent, and LW Casa de Valores SA also participated. Pacific Road Capital Management will invest $2 million.
In addition, the company raised $1.12 million in cash warrant exercise fees as part of a private solicitation for holders to exercise warrants.
The lithium mining and energy company is based in Lima, Peru.
| Issuer: | Li3 Energy, Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | $4.9 million
|
| Units: | 7,406,666 (in first tranche)
|
| Price: | $0.27
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.40
|
| Agents: | Gottbetter Capital Markets, LLC, (lead), Rodman & Renshaw, LLC, LW Casa de Valores SA
|
| Investor: | Pacific Road Capital Management (for $2 million)
|
| Pricing date: | April 4
|
| Settlement date: | April 7 (for $1,999,800)
|
| Stock symbol: | OTCBB: LIEG
|
| Stock price: | $0.32 at close April 4
|
| Market capitalization: | $30.11 million
|
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