Ultra Lithium Inc. Amends Private Placement to Add Flow-Through Component Due to Strong Investor Demand


Ultra Lithium Inc. (TSX-V:ULI, OTCQB:ULTXF) announced that due to strong investor demand, it has amended its previously announced C$7,003,000 non-brokered private placement to include flow-through units.

The Vancouver, B.C.-based exploration company, which focuses on acquiring and developing lithium, gold and copper assets, said net proceeds from unit sales will be used to “finance exploration of the company’s properties in Argentina, Canada and Nevada and for general working capital purposes”.

The company said it will raise CA$7,003,000 from the sale of Company Units at a price of CA$0.235 per unit, and Company Flow-Through Units (FT Units) at a price of CA$0.25. per FT unit for gross proceeds of up to C$2 million.

READ: Ultra Lithium reports encouraging progress at its Laguna Verde lithium brine project in Argentina

Each unit will consist of one common share and one-half common share purchase warrant. Each FT unit will consist of one common share to be issued as a “flow-through share” and one-half warrant. Each warrant will entitle its holder to purchase one non-flow-through share at a price of C$0.30 for a period of 12 months after the closing date of the offering.

Red Cloud Securities Inc is acting as an intermediary in connection with part of the offering, the company said, and intermediary fees will be paid in accordance with the policies of the TSX Venture Exchange.

As part of the offering, China’s Yahua Group plans to make a C$5 million strategic investment in units. Founded in 1952, Yahua is one of the earliest chemical companies established after the founding of the People’s Republic of China. The Chinese limited liability giant is currently focusing on the lithium and civilian explosives industry.

Ultra Lithium noted that the offer is subject to obtaining all standard regulatory approvals. Unit Shares, Warrant Shares and all Common Shares issuable from Finder’s Warrants will be subject to a hold period of four months and one day.

Ultra Lithium owns a brine lithium property in Argentina, hard rock spodumene-type lithium properties in Northwestern Ontario and a brine lithium property in the Big Smoky Valley, Nevada. The Company also owns other gold and base metal properties in Argentina.

Contact author Uttara Choudhury at [email protected]

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