/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR
FOR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Jan. 25, 2021 /CNW/ - Alpha Lithium
Corporation (TSXV: ALLI) (OTC: ALLIF) (Frankfurt: 2P62) ("Alpha"
or the "Company"), sole owner of one of the last large,
undeveloped salars in Argentina's
Lithium Triangle, is pleased to announce that it entered an
agreement with a syndicate of underwriters co-led by Echelon Wealth
Partners Inc. and Leede Jones Gable Inc. (the
"Underwriters") pursuant to which the Underwriters have
agreed to purchase 12,400,000 units (the "Units") from the
treasury of the Company, at a price of $0.81 per Unit (the "Issue Price") and
offer them to the public by way of short form prospectus for total
gross proceeds of approximately $10,044,000 (the "Offering").
Each Unit will consist of one common share of the Company (each
a "Common Share") and one common share purchase warrant
(each, a "Warrant" and collectively the "Warrants").
Each Warrant will entitle the holder thereof to acquire one Common
Share at a price of $1.10 for a
period of 24 months from the closing date of the Offering.
The Company has granted the Underwriters an option to purchase
up to an additional 15% of the Units at the Issue Price. The
Over-Allotment Option may be exercised in whole or in part to
purchase Shares, Warrants or Units as determined by the
Underwriters upon written notice to the Company at any time up to
30 days following the Closing Date (the "Over-Allotment
Option").
The Company intends to use the net proceeds of the
Offering to pursue land acquisitions, for exploration
expenditures and for general corporate purposes.
The Offering will be completed (i) by way of a short form
prospectus to be filed in the provinces of British Columbia, Alberta, and Ontario, (ii) on a private placement
basis in the United States
pursuant to exemptions from the registration requirements of the
United States Securities Act of 1933, as amended (the
"U.S. Securities Act") and (iii) outside Canada and the
United States on a basis which does not require the
qualification or registration of any of the Company's securities
under domestic or foreign securities laws.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of securities in the United States. The securities have not
been and will not be registered under the U.S. Securities Act or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
In connection with the Offering, the Underwriters will receive a
cash commission of 7.0% of the gross proceeds of the Offering and
that number of non-transferable compensation options (the
"Compensation Options") as is equal to 7.0% of the aggregate
number of Units sold under the Offering. Each Compensation Option
is exercisable into one Common Share of the Company at the Issue
Price for a period of 24 months from the closing date of the
Offering.
The Offering is expected to close on or about February 16, 2021, or such other date as the
Company and the Underwriters may agree, and is subject to customary
closing conditions, including the approval of the securities
regulatory authorities and the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF ALPHA LITHIUM CORPORATION
"Brad Nichol"
Brad Nichol
President, CEO and Director
About Alpha Lithium (TSX.V: ALLI) (OTC: ALLIF) (Frankfurt: 2P62)
Alpha Lithium is a growing team of industry professionals and
experienced stakeholders focused on the development of the Tolillar
Salar. Together, we have assembled 100% ownership of what may be
one of Argentina's last
undeveloped lithium salars, encompassing 27,500 hectares (67,954
acres), neighboring multi-billion-dollar lithium players in the
heart of the renowned "Lithium Triangle". Other companies in
the area exploring for lithium brines or currently in production
include Galaxy Lithium, Livent, and POSCO in Salar del Hombre
Muerto; Orocobre in Salar Olaroz; Eramine SudAmerica S.A. in Salar
de Centenario; and Gangfeng and Lithium Americas in Salar de
Cauchari.
For more information
visit: https://alphalithium.com/ and follow us
on Twitter or Facebook.
Forward-Looking Statements
This news release contains forward-looking information which is
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ from those
projected in the forward-looking statements. While these statements
reflect management's current plans, projections, and intents, by
their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond the control of
the Company. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on these forward-looking
statements. The Company's actual results, programs, production
decisions (if any) activities and financial position could differ
materially from those expressed in or implied by these
forward-looking statements. The Company assumes no
responsibility to update or revise such information to reflect new
events or circumstances, except as required by law.
Neither the TSX Venture Exchange 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.
SOURCE Alpha Lithium Corp.
