LithiumBank Resources Corp. boosts its private placement to $3M to expedite asset advancement in Canada, with significant insider participation and promising initial economic assessments for its Boardwalk project.
- ???? Upsizing of private placement to $3M to accelerate the advancement of LithiumBank’s district scale direct brine lithium assets in Western Canada.
- ????️ Planned drilling, sampling, and pilot plant testing at Boardwalk and Park Place Projects to upgrade resources and determine key performance indicators.
- ???? Company insiders are expected to purchase over $1.2M of the units offered, reinforcing trust and alignment with investors.
- ???? Offering subjected to a statutory hold period and certain conditions including necessary approvals, with each unit consisting of one common share and a half warrant enabling further purchase at $1.50 per share for 24 months.
- ???? Initial robust Preliminary Economic Assessment (PEA) of Boardwalk project shows promising economic viability with a pre-tax USD $2.7B NPV and a 21.6% IRR, aiming for detailed geological modelling and advanced engineering in the near future.
October 13, 2023 – Calgary, Alberta – LithiumBank Resources Corp. (TSX-V: LBNK) (the “Company” or “LithiumBank”) is pleased to announce it has increased its previously announced (see news release dated October 10th, 2023) non-brokered private placement (the “Offering”) of up to 2,000,000 units (“Units”) at a price of $1.00 per Unit to up to 3,000,000 Units, for aggregate gross proceeds of $3,000,000.
The net proceeds of the Offering will expand the company’s treasury to more than $9M that it will use to expedite further advancement of its portfolio of district scale direct brine lithium assets in Western Canada. LithiumBank intends to complete drilling and sampling to upgrade resources, as well as to conduct pilot plant testing to determine key performance indicators at its Boardwalk and Park Place Projects. Directors, officers, and consultants of the company are expected to purchase in excess of $1.2M of the Units subscribed for in the Offering.
The securities offered pursuant to the Offering will be subject to a statutory hold period of four months and a day from the date of issuance. The Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSXV.
Each Unit will consist of one common share in the capital of the Company (a “Common Share“) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $1.50 per Common Share for a period of 24 months from the date of issuance, subject to the policies of the TSX Venture Exchange (“TSXV”).
The Company expects to pay the following finders’ fees to certain eligible finders in connection with the Offering: (i) a cash commission of 6.0% of the gross proceeds raised under the Offering from investors introduced to the Company by the applicable finder; and (ii) such number of non-transferable common share purchase warrants of the Company equal to 6.0% of the Units sold under the Offering from investors introduced to the Company by the applicable finder.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The Units issued under the Offering will be issued to insiders of the Company and such participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Company will rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
About LithiumBank Resources Corp.
LithiumBank Resources Corp. (TSX-V: LBNK) (OTCQX: LBNKF), is a publicly traded North American lithium company that is focused on developing its two flagship projects, Boardwalk and Park Place, in Western Canada. The Company holds 2,480,196 acres of brown-field lithium brine permits, across 3 districts in Alberta and Saskatchewan. In May 2023, LithiumBank completed an initial robust preliminary economic assessment of its Boardwalk project that targets a 31,350 TPA operation with a pre-tax USD $2.7B NPV and a 21.6% IRR with the potential for a number of near-term enhancements. The Company will continue to advance its assets through detailed geological modelling, advanced engineering, and pilot plant testing with its direct lithium extraction technology exclusively licensed in Alberta and Saskatchewan for the purposes of primary lithium production.
For more information see the Company’s Boardwalk Lithium Brine Project Preliminary Economic Assessment Technical Report entitled “Preliminary Economic Assessment (PEA) for LithiumBank Resources Boardwalk Lithium-Brine Project in West- Central Alberta, Canada” effectively dated June 16, 2023 filed on SEDAR+ (www.sedarplus.ca) on June 23, 2023 and on the Company’s website (www.lithiumbank.ca).
A PEA is preliminary in nature as it includes a portion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
The PEA Technical Report was prepared by the following Qualified Persons; Roy Eccles, P. Geol. of APEX Geoscience Ltd., Kim Mohler, P. Eng., of GLJ Ltd., Gordon MacMillan, P. Geol. of Fluid Domains, Jim Touw, P. Geol. of HCL Ltd., Frederick Scott, P. Eng., of Scott Energy, Egon Linton, P. Eng., of Hatch Ltd., Evan Jones, P. Eng., of Hatch Ltd., Stefan Hlouschko, P. Eng., of Hatch Ltd.
The scientific and technical disclosure in this news release has been reviewed and approved by Mr. Kevin Piepgrass (Chief Operations Officer, LithiumBank Resources Corp.), who is a Member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA) and the Association of Professional Engineers and Geoscientists of the Province of British Columbia (APEGBC) and is a Qualified Person (QP) for the purposes of National Instrument 43-101. Mr. Piepgrass consents to the inclusion of the data in the form and context in which it appears.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. A preliminary economic assessment is preliminary in nature as it includes a portion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
Contact:
Rob Shewchuk
Co-Founder, CEO & Director
[email protected]
(778) 987-9767