LithiumBank Resources Corp. (
TSX-V:
LBNK) (
OTCQX: LBNKF) (the
“
Company” or “
LithiumBank”) is
pleased to announce that it has closed its previously announced
non-brokered private placement for gross proceeds of $3,506,500
through the sale of 3,506,500 units ("
Units") at a
price of $1.00 per Unit (the "
Private Placement").
Each Unit is comprised of one common share of the Company (a
"
Share") and one-half (1/2) of one common share
purchase warrant (each whole warrant, a
"
Warrant"). Each Warrant entitles the holder to
purchase an additional Share at a price of $1.50 per Share for a
period of 24 months from the date of issuance.
Paul Matysek, Executive Chairman of LithiumBank
comments, “I am very pleased at the conviction and commitment of
the Board and senior management to all fully participate in the
financing. These proceeds together with over 6 million dollars
designated for exploration will be instrumental in advancing
Boardwalk and Park Place, our two district scale projects and
expediting our upcoming pilot plant testing with G2L.”
All securities issued in connection with the
Private Placement are subject to a four-month hold period from the
closing date under applicable Canadian securities laws, in addition
to such other restrictions as may apply under applicable securities
laws of jurisdictions outside Canada. The Private Placement is
subject to final acceptance of the TSX Venture Exchange (the
"TSXV").
The net proceeds of the Private Placement will
be used for administration and working capital and to expedite
further advancement of its portfolio of district scale direct brine
lithium assets in Western Canada.
Multilateral Instrument 61-101
In addition, the following insiders of the
Company participated for an aggregate of $970,000 as follows: Paul
Matysek, Executive Chairman and Director purchased 150,000 units,
Rob Shewchuk, CEO and Director purchased 100,000 units, Christopher
Murray, a director of the Company, purchased 250,000 Units; Gianni
Kovacevic, a director of the Company, purchased 250,000 Units;
Ekaterina Zotova a director of the Company, purchased 150,000
Units; Steven Piepgrass a director of the Company, purchased 20,000
Units; Kevin Piepgrass, an officer of the Company, purchased 40,000
Units; and Ann Fehr an officer of the Company, purchased 10,000
Units; (collectively “Interested Parties”). Their
participation accounted for over 27.66% of the proceeds from the
Private Placement. The placement to the Interested Parties
constitutes a “related party transaction” within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101”).
Notwithstanding the foregoing, the directors of the Company have
determined that the Interested Parties’ participation in the
Private Placement will be exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 in reliance
on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI
61-101. The Company did not file a material change report more than
21 days before the expected closing of the Private Placement as the
details of the Private Placement and the participation therein by
related parties of the Company were not settled until shortly prior
to closing and the Company wished to close on an expedited basis
for sound business reasons.
In connection with the Private Placement, the
Company paid certain finders, including PI Financial Corp., Red
Cloud Securities Inc. and Leede Jones Gable Inc. the following
finders’ fees: (i) a cash commission in the aggregate amount of
$41,640, being up to 6.0% of the gross proceeds raised under the
Private Placement from investors introduced to the Company by such
finders; and (ii) 40,290 non-transferable common share purchase
warrants of the Company (“Finder Warrants”), being
equal to 6.0% of the Units sold under the Private Placement from
investors introduced to the Company by such finders. Each Finder
Warrant is exercisable to acquire one unit of the Company (a
“Finder Unit”) at a price of $1.00 per Finder
Unit. Each Finder Unit is comprised of one Share and one-half (1/2)
of one Warrant, with each Warrant entitling the holder thereof to
purchase an additional Share at a price of $1.50 per Share for a
period of 24 months from the date of issuance. The Finder Warrants
issued pursuant to the Private Placement will be subject to a four
month hold period from the date of issue.
Conditional Acceptance for Intellectual Property
License Agreement
The Company is also pleased to announce
following update regarding the previously announced intellectual
property license agreement dated September 8, 2023 (the
“License Agreement”) with G2L Greenview Resources
Inc. (“G2L”), a subsidiary of Go2Lithium Inc. The
Company has received conditional acceptance from the TSXV for the
License Agreement. The parties are continuing to work together to
secure approval from the TSXV for the issuance of the first
4,000,000 Consideration Shares to G2L pursuant to the License
Agreement. The License Agreement and the issuance of the
Consideration Shares remain subject to final TSXV approval.
Under the Licensing Agreement, announced
September 11, 2023, G2L shall grant to the Company a license in
Alberta and Saskatchewan for a full suite of continuous ion
exchange technologies in consideration for the issuance of up to
14,000,000 common shares in the capital of the Company dependent
upon achieving certain milestones (the “Consideration
Shares”).
About LithiumBank Resources
Corp.
LithiumBank Resources Corp. (TSX-V: LBNK)
(OTCQX: LBNKF), is a publicly traded North American lithium company
that is focused on developing its two flagship projects, Boardwalk
and Park Place, in Western Canada. The Company holds 2,480,196
acres of brown-field lithium brine permits, across 3 districts in
Alberta and Saskatchewan. In May 2023, LithiumBank completed
an initial robust preliminary economic assessment of its Boardwalk
project that targets a 31,350 TPA operation with a pre-tax USD
$2.7B NPV and a 21.6% IRR with the potential for a number of
near-term enhancements.
For more information see the Company’s Boardwalk
Lithium Brine Project Preliminary Economic Assessment Technical
Report entitled “Preliminary Economic Assessment (PEA) for
LithiumBank Resources Boardwalk Lithium-Brine Project in West-
Central Alberta, Canada” effectively dated June 16, 2023 filed
on SEDAR+ (www.sedarplus.ca) on June 23, 2023 and on the
Company’s website (www.lithiumbank.ca).
A PEA is preliminary in nature as it includes a
portion of inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the preliminary economic
assessment will be realized.
The PEA Technical Report was prepared by the
following Qualified Persons; Roy Eccles, P. Geol. of APEX
Geoscience Ltd., Kim Mohler, P. Eng., of GLJ Ltd., Gordon
MacMillan, P. Geol. of Fluid Domains, Jim Touw, P. Geol. of HCL
Ltd., Frederick Scott, P. Eng., of Scott Energy, Egon Linton, P.
Eng., of Hatch Ltd., Evan Jones, P. Eng., of Hatch Ltd., Stefan
Hlouschko, P. Eng., of Hatch Ltd.
The scientific and technical disclosure in this
news release has been reviewed and approved by Mr. Kevin Piepgrass
(Chief Operations Officer, LithiumBank Resources Corp.), who is a
Member of the Association of Professional Engineers and
Geoscientists of Alberta (APEGA) and the Association of
Professional Engineers and Geoscientists of the Province of British
Columbia (APEGBC) and is a Qualified Person (QP) for the purposes
of National Instrument 43-101. Mr. Piepgrass consents to the
inclusion of the data in the form and context in which it
appears.
Mineral resources are not mineral reserves and
do not have demonstrated economic viability. There is no guarantee
that all or any part of the mineral resource will be converted into
a mineral reserve. The estimate of mineral resources may be
materially affected by geology, environment, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
issues. A preliminary economic assessment is preliminary in nature
as it includes a portion of inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary economic assessment will be realized.
About G2L Greenview Resources
Inc.
Go2Lithium Inc., the parent company of G2L, was
formed in early 2023 as a 50/50 joint venture with Computational
Geosciences Inc (CGI), a subsidiary of the Robert Friedland-chaired
Ivanhoe Electric Inc. and Clean TeQ Water. Please see Clean TeQ’s
case studies for additional information on their suite of water
treatment and metal extraction technologies.
Contact: Rob Shewchuk Co-Founder, CEO &
Director rob@lithiumbank.ca (778) 987-9767
Cautionary Statement Regarding Forward
Looking Statements
This release includes certain statements and
information that may constitute forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts,
including statements regarding future estimates, plans, objectives,
timing, assumptions or expectations of future performance,
including without limitation, that the Company will use the
proceeds of the Private Placement as currently anticipated,
including to expedite the further advancement of its portfolio of
district scale direct brine lithium assets in Western Canada, that
the Company will continue to advance its assets through detailed
geological modelling, advanced engineering, and pilot plant testing
with its direct lithium extraction technology exclusively licensed
in Alberta and Saskatchewan for the purposes of primary lithium
production; that the Company obtains final acceptance by the TSXV
for the Private Placement, the ability of the Company to satisfy
the conditions to complete the Private Placement, the ability of
the parties to receive TSXV approval for the issuance of the first
4,000,000 Consideration Shares, the ability of the parties to
receive final TSXV approval for the License Agreement and the
issuance of the Consideration Shares, and the target and potential
production of the Company’s projects are forward-looking statements
and contain forward-looking information. Generally, forward-looking
statements and information can be identified by the use of
forward-looking terminology such as “intends” or “anticipates,” or
variations of such words and phrases or statements that certain
actions, events or results “may,” “could,” “should” or “would” or
occur.
Forward-looking statements are based on certain
material assumptions and analysis made by the Company and the
opinions and estimates of management as of the date of this press
release, including that the Company will receive final approval of
the TSXV for the Private Placement, assumptions relating to the
state of the financial markets for the Company’s securities, that
the parties to the License Agreement will be able to obtain TSXV
approval for the issuance of the first 4,000,000 Consideration
Shares, and that the parties to the License Agreement will be able
to obtain final TSXV approval for the License Agreement and the
issuance of the Consideration Shares;
These forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking statements or
forward-looking information. Important risks that may cause actual
results to vary, include, without limitation, that the Company will
not use the proceeds of the Private Placement as anticipated,
market volatility, unanticipated costs, changes in applicable
regulations, that the Company will not obtain final acceptance by
the TSXV for the private placement, changes in the Company’s
business plans, the risk that required approvals are not obtained
and material conditions are not satisfied in connection with the
License Agreement and the issuance of the Consideration Shares, the
risk that the Transaction is not approved or completed on the terms
set out in the Agreement or at all, and the risk that the Company
is unable to achieve its target and potential production.
Although management of the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and forward-looking information. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any
forward-looking statement, forward-looking information or financial
out-look that are incorporated by reference herein, except in
accordance with applicable securities laws.
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