Lithium South Announces Closing Oversubscribed Non-Brokered Lithium South Announces Closing Oversubscribed Non-Brokered Private Placement
Vancouver, British Columbia / February 26, 2021 – Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: NRGMF) (Frankfurt OGPN), announces that, due to high demand, it has closed its oversubscribed non-brokered private placement (the “Private Placement”) issuing an aggregate of 5,336,667 units (the “Units”) at a price of $0.60 per Unit raising gross proceeds of $3,202,000.
Each Unit is comprised of one common share (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will allow the holder to purchase one Share of the Company at a price of $0.80 per Share for a period of five years from the date of closing of the Private Placement.
Proceeds of the Private Placement will be used for general working capital purposes and to advance the Company’s HMN Lithium Project, located in Salta Province, Argentina. The project is located on the Hombre Muerto Salar, the premier lithium producing salar in Argentina. The property is adjacent to land under development by Korean multinational corporation POSCO, who acquired their ground from Galaxy Resources Ltd. for US$280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, and the property has two pumping wells installed. The next phase of development will include moving the project to a pre-feasibility. In addition, the Company is evaluating several new extraction technologies for lithium production which may be applicable to the project.
All securities issued will be subject to a four month hold period.
The Company paid finder’s fees of $245,200.02 and 408,667 finder’s warrants (the “Finder’s Warrants”) to Public Eye Consulting Busche, Nathan Rotstein, Canaccord Genuity Corp., and PI Financial Corp. The Finder’s Warrants are non-transferable and exercisable at $0.80 per Finder’s Warrant for a period of 5 years.
On behalf of the board of directors of Lithium South Development Corporation
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders Call 855-415-8100 / ahobkirk@nrgmetalsinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and