TORONTO, March 4, 2021 /CNW/ - Neo Lithium Corp.
("Neo Lithium" or the "Company") (TSXV: NLC) (OTCQX:
NTTHF) (FSE: NE2) is pleased to announce that it has filed and
obtained a receipt for a preliminary short form prospectus (the
"Preliminary Prospectus") in the provinces of Ontario, Alberta, British
Columbia and Nova Scotia
(the "Qualifying Jurisdictions") in connection with its
private placement of 9,900,000 special warrants (the "Special
Warrants") for gross proceeds of $30,195,000 (the "Offering") completed on
February 10, 2021. The Preliminary
Prospectus relates to the qualification for distribution of the
9,900,000 common shares in the capital of the Company (each, an
"Underlying Share") underlying the Special Warrants. All
unexercised Special Warrants will be deemed to be exercised for
Underlying Shares for no additional consideration and without
further action on the part of the holders on the earlier of (i)
June 11, 2021 and (ii) the second
business day after a receipt or deemed receipt is issued for a
(final) short form prospectus by the securities regulatory
authorities in each of the Qualifying Jurisdictions qualifying the
Underlying Shares for distribution. No additional Special Warrants
are being offered for sale in connection with the Preliminary
Prospectus and no additional funds are to be received by the
Company from the distribution of the Underlying Shares. The
Offering was led by Stifel GMP, as lead underwriter and sole
bookrunner, on its own behalf and on behalf of a syndicate of
underwriters including Cormark Securities Inc., Canaccord Genuity
Corp., Paradigm Capital Inc. and Eight Capital (together with
Stifel GMP, the "Underwriters").
The Company plans to use the net proceeds from the Offering to
fund development work at the 3Q Lithium Project located in
Catamarca, Argentina and for
working capital and general corporate purposes. More specifically,
the Company intends to use the majority of the net proceeds to
advance the construction of the concentration pond system at a
commercial scale with a view to accelerating future production from
the 3Q Project, as further described in the Preliminary
Prospectus. As at the date of this press release the Company
has a significant cash position of approximately C$59 million. The Company currently has
128,068,784 shares outstanding and including the future exercise of
the Special Warrant deal the Company will have 137,968,784 shares
outstanding.
The completion of the Offering was announced on February 10, 2021. A copy of the Preliminary
Prospectus and of the press release announcing the completion of
the Offering are each available under the Company's SEDAR profile
at www.sedar.com.
In addition, and as previously announced by the Company, a
subsidiary of Contemporary Amperex Technology Co., Limited
("CATL"), has provided notice of its intention to exercise
its right to maintain its pro rata equity interest in the
Company by subscribing for additional common shares of the Company
pursuant to a contractual participation right under an investor
rights agreement between CATL and the Company on substantially
equivalent terms to the Offering. The private placement with
CATL is scheduled to close in March
2021 hereof 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 TSXV and any required securities regulatory authorities, and
the execution of a subscription agreement.
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 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
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 as to the
intended use of proceeds of the Offering, receipt of regulatory
approvals, including the approval of the TSXV, the intention of
CATL to exercise its right to maintain its pro rata percentage
holding of the Company, the deemed exercise of the Special
Warrants, and the Company's intentions with respect to filing a
(final) short form prospectus and obtaining a final receipt
therefor (which also assumes that such receipt will be obtained
prior to April 12, 2021). 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 obtaining the approval of TSXV for the Offering, risks
related to obtained a final receipt from the applicable securities
regulatory authorities, 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.
