Liberty One Lithium Corp. (LBY: CA) has closed a first tranche of its $4.2-million non-brokered private placement that was announced in news releases dated Feb. 6, 2017, Feb. 8, 2017, and March 7, 2017.
The Company issued 10,238,904 units (the “Units”) at a price of $0.35 per Unit for gross proceeds of $3,583,616.70. Each Unit consists of one common share in the capital of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share at a price of $0.50 per Share until May 2, 2018.
The Company has paid eligible finders a cash commission in the aggregate amount of $245,953.18 being 7% of the aggregate proceeds from the sale of Units to purchasers introduced by the finders as well as issued an aggregate of 702,723 non-transferable finders warrants (each a “Finders Warrant”), which is equal to 7% of the number of Units sold to purchasers introduced by the finders. Each Finders Warrant entitles the finder to acquire a common share at an exercise price of $0.50 per share until May 2, 2018.
All securities issued in connection with the Offering are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation expiring on September 3, 2017. The net proceeds received from the Offering will be used to fund the exploration of the Company’s recently acquired Paradox North Property and for general working capital.
It is expected that the Offering will close one additional tranche on May 4, 2017.
On April 27, 2017 the Company announced the grant of stock options (the “Options”) to purchase up to 2,250,000 common shares pursuant to the Company’s stock option plan. The Company wishes to clarify that the Options are exercisable at a price of $0.55 per share (not $0.44 as previously announced) and will expire on April 27, 2022.
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