Posco Canada reduces strike price of first-tranche warrants to $0.21
By Toni Weeks
San Diego, Aug. 20 - Li3 Energy, Inc. said it closed the second and final tranche of an $18 million private placement of units with investor Posco Canada Ltd. The company raised $8 million in August 2011 and raised an additional $10 million in this tranche.
The company sold a total of 100,595,300 units of one common share and one warrant. It sold 38,095,300 units at $0.21 per unit in the first tranche and 62.5 million units at $0.16 per unit in the second tranche.
Each warrant is exercisable at $0.21 for three years. The strike price is a 75% premium to the Aug. 23, 2011 closing share price of $0.12. The strike price for the first-tranche warrants was initially set at $0.40.
Posco will also receive 5 million two-year warrants, each one exercisable for one common share at $0.15 per share. The strike price of these additional warrants is a 25% premium to the Aug. 23, 2011 closing share price.
The investor purchased the first $8 million of units in August 2011, at which time it agreed to purchase an additional $10 million of units if the company met certain conditions, including updating a measured and indicated resource report, completing its work program and having the necessary permits and approvals in place for building and operating a brine test facility on the Maricunga property.
Proceeds will be used for activities related to the development of the Maricunga project.
The lithium mining and energy company is based in Lima, Peru.
| Issuer: | Li3 Energy, Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $18 million
|
| Units: | 100,595,300 (38,095,300 in first tranche, 62.5 million in second tranche)
|
| Prices: | $0.21 in first tranche, $0.16 in second tranche
|
| Warrants: | One warrant per unit plus an additional 5 million warrants
|
| Warrant expiration: | Three years for first- and second-tranche warrants, two years for additional warrants from second tranche
|
| Warrant strike price: | $0.21
|
| Investor: | Posco Canada Ltd.
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| Pricing date: | Aug. 24, 2011 for $8 million
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| Settlement dates: | Sept. 21, 2011 for $8 million; Aug. 20 for $10 million
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| Stock symbol: | OTCBB: LIEG
|
| Stock price: | $0.15 at close Aug. 24, 2011
|
| Market capitalization: | $22 million
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