TORONTO, April 1, 2021 /CNW/ - Neo Lithium Corp. ("Neo
Lithium" or the "Company") (TSXV: NLC) (OTCQX: NTTHF)
(FSE:NE2) is pleased to announce that it has filed and obtained a
receipt (the "Receipt") for a final short form prospectus
(the "Prospectus") in the provinces of Ontario, Alberta, British
Columbia and Nova Scotia
(the "Qualifying Jurisdictions") in connection with its
previously completed private placement of 9,900,000 special
warrants (the "Special Warrants") for gross proceeds of
$30,195,000 (the "Offering").
The Prospectus qualifies the distribution of the 9,900,000 common
shares in the capital of the Company (each, an "Underlying
Share") underlying the Special Warrants that will each be
exercised for one Underlying Share for no additional consideration
and without further action on the part of the holders. As a result
of obtaining the Receipt, the Special Warrants shall be deemed to
be exercised, and 9,900,000 Underlying Shares will be issued,
effective at 9:00 a.m. (Toronto time) on April
6, 2021. For additional clarity, no penalty shares will be
issued pursuant to the penalty provisions associated with the
Special Warrants.
The Offering was led by Stifel GMP, as lead underwriter and sole
bookrunner, on its own behalf and on behalf of a syndicate of
underwriters including Cormark Securities Inc., Canaccord Genuity
Corp., Paradigm Capital Inc. and Eight Capital (together with
Stifel GMP, the "Underwriters").
The Company also announces that it has filed a revised annual
information form for the year ended December
31, 2019 (the "AIF"), and an amended technical report
for the Company's 3Q Lithium Project (the "3Q Report")
following a review of the Company's preliminary prospectus filed in
connection with the Offering (including the documents incorporated
by reference therein) dated March 3,
2021 by the Ontario Securities Commission (the
"OSC").
The AIF has been revised to include additional disclosure about
the prevailing global lithium price environment to provide readers
with additional context for the use of the lithium price
sensitivity analysis in the 3Q Report. The Company reminds
investors to use caution and consider the additional disclosure in
the AIF, including the risk factors described therein, when making
an investment decision based on the economic analysis in the 3Q
Report. The Company expects to commission a new long-term lithium
carbonate price forecast for the economic assumptions in the
expected definitive feasibility for the 3Q Project. The revised AIF
also specifies the directors and officers of the Company's
subsidiaries in a revised corporate chart.
The Company has also filed an amended technical report for
the 3Q Project entitled "Preliminary Feasibility Study (PFS) - 3Q
Project, NI 43-101 Technical Report Catamarca, Argentina" with an effective date of
May 7, 2019 and amended as of
May 8, 2019, and subsequently amended
as of April 1, 2021. The 3Q Report
has been amended to replace information about sources of
information that were previously disclosed under the heading in
Section 3 - "Reliance on Other Experts" to Section 2.3 -
"Introduction – Sources of Information". The replacement was
effected at the OSC's request to avoid suggestions that the authors
of the 3Q Report were "relying" on sources of information other
than as permitted under the limited exceptions for reliance on
other experts described in Section 3 of National Instrument
43-101F1 - Reliance on Other Experts.
The re-filings of the AIF and 3Q Report described above and the
issuance of this news release as it pertains thereto are at the
request of staff of the Ontario Securities Commission in connection
with the review conducted in connection with the filing of the
Prospectus.
Each of the AIF, 3Q Report and Prospectus are available under
the Company's profile on SEDAR at www.SEDAR.com.
The Company plans to use the net proceeds from the Offering to
fund development work at the 3Q Lithium Project located in
Catamarca, Argentina and for
working capital and general corporate purposes. More specifically,
the Company intends to use the majority of the net proceeds to
advance the construction of the concentration pond system at a
commercial scale with a view to accelerating future production from
the 3Q Project. As at the date of this press release the
Company has a significant cash position of approximately
C$59 million. The Company currently
has 129,214,654 common shares outstanding, which includes 860,870
common shares issued to a subsidiary of Contemporary Amperex
Technology Co., Limited ("CATL") pursuant to the exercise of
a participation right in connection with the Offering as disclosed
on March 16, 2021, and upon the
exercise of the Special Warrants, the Company will have 139,114,654
common shares outstanding. The common shares issued to CATL are
subject to restrictions on trading until July 17, 2021.
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in
lithium brine development by virtue of its high quality 3Q Project
and experienced team. Neo Lithium is rapidly advancing its 100%
owned 3Q Project - a unique high-grade lithium brine lake and salar
complex in Latin America's
"Lithium Triangle".
The 3Q Project is located in Catamarca Province, the largest
lithium producing area in Argentina covering approximately 35,000 ha
including a salar complex of approximately 16,000 ha.
Additional information regarding Neo Lithium Corp. is available
on SEDAR at www.sedar.com under the Company's profile and at its
website at www.neolithium.ca, including various pictures of ongoing
work at the project.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
Cautionary Statements Regarding Forward-Looking
Statements
Forward-Looking Statements -- Certain information set forth
in this news release may contain forward-looking statements. Such
statements include but are not limited to, statements as to the
intended use of proceeds of the Offering, the exercise of the
Special Warrants and the expected timing therefor, and the
completion of a definitive feasibility study for the 3Q Project and
the economic analysis to be used therein. Generally,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "is expected", "scheduled",
"estimates" "intends", "anticipates", "believes", or variations of
such words and phrases, or statements that certain actions, events
or results "can", "may", "could", "would", "should", "might" or
"will", occur or be achieved, or the negative connotations thereof.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company, which could cause the actual results, performance or
achievements of the Company to be materially different from the
future results, performance or achievements expressed or implied by
such statements. These risks include, without limitation, risks
related to failure to obtain adequate financing on a timely basis
and on acceptable terms, political and regulatory risks associated
with mining and exploration activities, including environmental
regulation, risks and uncertainties relating to the interpretation
of drill and sample results, risks related to the uncertainty of
cost and time estimation and the potential for unexpected delays,
costs and expenses, risks related to metal price fluctuations, the
market for lithium products, and other risks and uncertainties
related to the Company's prospects, properties and business
detailed elsewhere in the Company's disclosure record. Although the
Company believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended and undue reliance should not be
placed on forward-looking statements.
SOURCE Neo Lithium Corp.
