This statement caught my eye - plus the fact "Lithium" The company currently has sufficient working capital to cover most of its operating expenses for the next year but will require additional capital to finance its commitments under the agreement.
As a result, the company is engaging in a private placement financing, the proceeds of which will finance its financial obligations resulting from the agreement. The financing will see the company issue a total of eight million postconsolidation units at a price of 15 cents per unit. Each unit comprises one common share and a share purchase warrant exercisable for a period of two years at an exercise price of 30 cents. If the company's share price closes at or above $1.00 for a period of 20 consecutive trading days, the holders of the warrants will either have to exercise them on 14 days notice or the warrants will be cancelled.
The property covers an area of 3,200 acres of placer claims in the Big Smoky Valley in Nevada, directly adjacent to claims controlled by Ultra Lithium Inc. and Avarone Metals Inc.
The Big Smoky Valley is located 25 kilometres immediately north of the Clayton Valley, home to Albemarle's Silver Peak lithium mine, the only producing lithium brine facility in the United States. The Lincoln lithium property is located approximately 225 kilometres southeast of the Tesla Motors Gigafactory site, scheduled to open on July 29, 2016.