Bought Deal - Use of Proceeds
PRELIMINARY SHORT FORM PROSPECTUS - PAGE 6
The aggregate net proceeds of the Offering excluding the net proceeds, if any, from the exercise of the Over-Allotment Option are intended to be used to fund exploration and development activities at the PAK Lithium Project for work related to delivery of a potential definitive feasibility study (“DFS”), as well as for general administration and corporate purposes, as follows: Activity or Nature of Expenditure Approximate Use of Proceeds DFS Phase 1 – technical grade lithium concentrate from the PAK Deposit $2,750,000 Concentrate Processing - Testing and support work for DFS Phase 1 – technical grade lithium concentrate from the PAK Deposit $1,000,000 Chemical Processing - Engineering and construction of 50,000 tonnes per year concentrate processing chemical demo plant for DFS Phase 2 - battery grade lithium carbonate and hydroxide - Construction of an analysis lab for the chemical demo plant $10,450,000 $405,000 Working capital and general corporate purposes (excluding depreciation and stock option expense) $4,013,900