lith's newsLITH has a news today, it's quite on SH board, and just post it.
LITH's deal with Chengxin is much like CATL/NLC's deal, and it shows Chengxin's confidence in LITH and Arizora project, keep it long!
tiger
https://ceo.ca/@thenewswire/lithium-chile-strategic-investor-chengxin-lithium
CALGARY, ALBERTA – TheNewswire - April 4, 2022 – Lithium Chile Inc. (TSXV:LITH) (OTC:LTMCF)(“Lithium Chile” or the “Company”) is pleased to announce that it plans to complete a non-brokered private placement of 29,380,000 common shares of the Company (“Offered Shares”) at a price of $0.95 per Offered Share, for aggregate gross proceeds of $27,911,000 (the “Offering”). The Offering is to be completed by a wholly owned subsidiary of Chengxin Lithium Group Co., Ltd. (“Chengxin”). In conjunction with the Offering, Chengxin will be entitled to nominate two directors to the board of directors of Lithium Chile and Chengxin has agreed to provide Lithium Chile with two technical personnel to aid in the exploration and development of the Company's properties in Argentina.
Chengxin participated in the recent private placement completed by Lithium Chile (see news release dated January 31, 2022). That private placement was for units comprised of 4,285,720 common shares and 4,285,720 share purchase warrants. Completion of the proposed Offering, along with the exercise of Chengxin existing warrants, will bring Chengxin’ stake in the Company to 19.86%. This will result in total gross proceeds of $34,553,866.
Steve Cochrane, President and CEO commented “We are thrilled to have Chengxin as a key strategic and cornerstone shareholder of our Company. Chengxin supports our vision, and with their investment, we can rapidly accelerate the exploration and developments of our properties with an eye on increasing our existing resources in a very meaningful way. These additional funds will allow the Company to look at opportunities we have been presented with that will result in expanding our footprint in both Argentina and Chile. Chengxin is a well-respected leader in the lithium space; their extensive experience will be valuable as our Company continues to forge ahead. I note the recent investment by BYD in Chengxin gives the Company a door into the whole supply chain for electric vehicles."
Chengxin recently announced a strategic cooperation agreement with BYD, China’s largest electric carmaker, which will provide for no more than $600 million CDN investment for more than 5% stake in Chengxin (subject to approval). Chengxin and BYD expect that the cooperation agreement will allow them to jointly acquire and develop lithium resources, and BYD will step up the procurement of lithium products for supply stability and cost advantages.
Chengxin is a publicly listed company in China with a market capitalization of 45.6 billion yuan ($9 billion CDN) and at December 31st, 2021, its net profit was 862 million yuan ($170 million CDN) for the fiscal year. Chengxin is primarily engaged in the new energy materials business including production from spodumene and brines as well as manufacturing of lithium products including lithium hydroxide and lithium carbonate.
At present, Chengxin has 70kt of lithium product capacity and ranks No. 2 in China, with another 60kt capacity under construction in Indonesia. To secure feedstock supplies, Chengxin owns upstream resource in China and overseas including an existing asset in Argentina.
Completion of the Offering is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The Offered Shares issued under the Offering will be subject to a four month hold period from the date of the closing of the Offering.