- CATL to invest an additional C$2.6
million and maintain its 8% equity ownership in Neo
Lithium
TORONTO, Feb. 9, 2021 /CNW/ - Neo Lithium Corp.
("Neo Lithium" or the "Company") (TSXV: NLC) (OTCQX:
NTTHF) (FSE: NE2) is pleased to announce that Contemporary
Amperex Technology Co., Limited (SZSE: 300750) ("CATL"), a
leading Chinese battery manufacturer and technology company that
specializes in the manufacturing of lithium-ion batteries for
electric vehicles and energy storage systems, and battery
management systems has provided notice to the Company of its
intention to subscribe, through a subsidiary and pursuant to its
Investor Rights Agreement (described below), on a non-brokered
private placement basis, for 860,870 common shares of the
Company (the "Shares") at a price of C$3.05 per Share for aggregate gross
proceeds to the Company of C$2,625,652 (the "Sidecar
Placement"), to maintain its 8% equity interest in the
Company.
Pursuant to the terms of an investor rights agreement between
CATL and the Company (the "Investor Rights Agreement"), CATL
holds a participation right to maintain its pro rata
percentage holding in the Company. The right to the Sidecar
Placement was triggered as a result of the "bought deal" private
placement financing of special warrants of the Company ("Special
Warrants") previously announced by the Company on January 20, 2021 (the "Brokered
Offering"). Pursuant to its rights under the Investor Rights
Agreement, and in parallel to the terms of the Brokered Offering,
CATL shall be entitled to an additional 10% of the Shares for no
additional consideration should the Company not receive a final
receipt by the Ontario Securities Commission for a (final) short
form prospectus qualifying the distribution of the Shares
underlying the Special Warrants within two months of the closing of
the Brokered Offering, scheduled for February 10, 2021.
The Company intends to use the net proceeds from the Sidecar
Placement to fund development work at the 3Q Lithium Project
located in Catamarca, Argentina
and for working capital and general corporate purposes.
The Sidecar Placement is scheduled to close within 45 days
of the date hereof (the "Closing Date") and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals including customary approval from the
government of the People's Republic of China, the approval of
the TSX Venture Exchange and any required securities regulatory
authorities, and signing of a subscription agreement.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the 1933 Act and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the 1933 Act, as amended, and
application state securities laws.
About CATL
CATL is a global leader in the development and manufacturing of
lithium-ion batteries, with businesses covering R&D,
manufacturing and sales in battery systems for new energy vehicles
and energy storage systems. In 2019, the company's EV battery sales
volume reached 40.25 GWh worldwide, and making it the world leader
in annual EV battery consumption volume (source SNE Research).
For more information, please visit
http://www.catlbattery.com.
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in
lithium brine development by virtue of its high quality 3Q Project
and experienced team. Neo Lithium is rapidly advancing its 100%
owned 3Q Project - a unique high-grade lithium brine lake and salar
complex in Latin America's
"Lithium Triangle".
The 3Q Project is located in the Catamarca Province, the largest
lithium producing area in Argentina covering approximately 35,000 ha
including a salar complex of approximately 16,000 ha.
Additional information regarding Neo Lithium Corp. is available
on SEDAR at www.sedar.com under the Company's profile and at its
website at www.neolithium.ca, including various pictures of ongoing
work at the project.
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 press release.
Cautionary Statements Regarding Forward-Looking
Statements - Certain information set forth in this
news release may contain forward-looking statements. Such
statements include but are not limited to, statements concerning
the Sidecar Placement and the Brokered Offering, the intended use
of proceeds therefrom, the Closing Date and receipt of regulatory
approvals, including the approval of the TSXV. Generally,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "is expected", "scheduled",
"estimates" "intends", "anticipates", "believes", or variations of
such words and phrases, or statements that certain actions, events
or results "can", "may", "could", "would", "should", "might" or
"will", occur or be achieved, or the negative connotations thereof.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company, which could cause the actual results, performance or
achievements of the Company to be materially different from the
future results, performance or achievements expressed or implied by
such statements. These risks include, without limitation, risks
related to failure to obtain regulatory approval for the Sidecar
Placement, failure to obtain adequate financing on a timely basis
and on acceptable terms, political and regulatory risks associated
with mining and exploration activities, including environmental
regulation, risks and uncertainties relating to the interpretation
of drill and sample results, risks related to the uncertainty of
cost and time estimation and the potential for unexpected delays,
costs and expenses, risks related to metal price fluctuations, the
market for lithium products, and other risks and uncertainties
related to the Company's prospects, properties and business
detailed elsewhere in the Company's disclosure record. Although the
Company believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended and undue reliance should not be
placed on forward-looking statements.
SOURCE Neo Lithium Corp.
