Pan American Lithium Corp. Announces Closing of Private Placement With POSCO
September 15 2011 - 8:36AM
Pan American Lithium Corp. (TSX-V:PL) (OTCBB:PALTF) (OTCQB:PALTF)
(the "Company" or "Pan American"), is pleased to announce, in
furtherance to its news release dated August 25, 2011, it has
closed the private placement (the "Offering") of 10,522,090 common
shares at the price of CDN$0.136 per common share with POSCO Canada
Ltd. ("POSCAN"), a Canadian corporation 100% owned by POSCO
(NYSE:PKX). The common shares issued by the Company in
connection with the Offering are subject to a hold period expiring
on January 15, 2012. The proceeds of CDN$1,431,004 will be
used primarily as working capital for Pan American's interests in
its lithium/potash brine properties, as well as general working
capital for the Company.
POSCO is one of the largest steel manufacturers in the world,
with headquarters in the Republic of South Korea, who is rapidly
expanding its business to ensure the development of lithium in the
Americas.
The Company granted POSCAN a right until expiry on December 31,
2012 to construct a production or R&D facility, at POSCAN's
expense, for the extraction of lithium or other minerals from
brines at one of the Company's Chilean brine properties, on terms
to be mutually agreed upon. If POSCAN elects not to exercise the
right by this date, POSCAN's pre-approval rights on certain
corporate actions discussed below will terminate and the Company
will not be required to nominate a POSCAN nominee to the Company's
board at future annual general meetings.
In connection with the closing, Pan American has agreed to
increase the size of its board to four directors and, subject to
approval from the TSX Venture Exchange, appoint a director
nominated by POSCAN/POSCO to the vacant seat. POSCAN has
nominated Mr. Hyundae Kim to serve as its nominee. The Company has
agreed to nominate the POSCO nominee to its board at annual general
meetings so long as POSCO owns no less than 10% of the Company's
issued and outstanding common shares and so long as POSCO exercises
its right to build the pilot plant on or prior to December 31,
2012, as discussed above. During the period in which the
nominee is appointed to the Company's board, the Company will not
be permitted to carry out certain corporate actions without the
prior approval of the nominee, including certain corporate
reorganizations, a sale of all assets, a change of business, the
alteration of the Company's constating documents (with the
exception of the creation of a class or series of preferred shares)
and the Company incurring debt that exceeds CDN$1 million (except
non-recourse project financing, the issuance of convertible debt or
preferred securities, or debt owed to trade creditors or to
officers, directors and consultants for unpaid salaries and
expenses).
The Company also granted POSCAN a pre-emptive right to purchase
a pro rata share of any new securities offered by the Company for
such period of time that POSCAN owns no less than 10% of the
Company's issued and outstanding common shares. Under such
circumstances, POSCAN is entitled to participate in such new
offerings to maintain its percentage of common shares. Certain
issuances are exempted from the pre-emptive right such as
securities issued to insiders, consultants and employees for
compensation purposes, the issuance of common shares on the
exercise of securities outstanding on the closing date of the
financing, the issuance of securities for the settlement of certain
debts, the issuance of securities to brokers, agents and finders in
connection with any financings and the issuances of securities in
connection with business combinations.
Andrew Brodkey, Pan American's President, commented as follows:
"Pan American is pleased to partner with POSCO, a company that is
dedicated to pursuing leading lithium projects globally, to align
our common goals by advancing the Pan American lithium brine
projects and a strategic partnership."
About Pan American:
In total, the Company has rights in eleven lithium and
potash-bearing brine projects in Chile's Atacama Region III
covering cumulatively more than 20,000 hectares. The Company also
has an option to acquire an indirect interest in the Cierro Prieto
geothermal lithium brine project in Baja California Norte, Mexico.
The Laguna Verde surface brine lake project is the most advanced of
the Company's portfolio of 11 lithium and potassium bearing brines
projects in Chile.
About POSCO
POSCO is a publicly traded Korean conglomerate, first
established in 1968, with a focus on the production and sale of
steel and steel products, both domestically in Korea and
internationally. POSCO is the fourth largest steel producer in the
world. In 2008, POSCO produced over 33 million tons of crude steel,
had revenues of over CDN$28 billion and net profits of over CDN$4
billion.
On Behalf of the Board,
PAN AMERICAN LITHIUM CORP. /s/ Andrew Brodkey Andrew A. Brodkey
President and CEO
Neither 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.
CONTACT: Jodi Henderson
Corporate Secretary
Tel: (520)989-0032
jhenderson@kriyah.com
First Potash Corporation (TSXV:PL)
Historical Stock Chart
From Jul 2024 to Aug 2024
First Potash Corporation (TSXV:PL)
Historical Stock Chart
From Aug 2023 to Aug 2024