Western Lithium closes $5.5-million placement
2009-05-06 15:13 ET - News Release
Shares issued 51,220,000
WLC Close 2009-05-05 C$ 0.60
Ms. Cindy Burnett reports
WESTERN LITHIUM COMPLETES $5.5 MILLION PRIVATE PLACEMENT
Western Lithium Canada Corp. has completed its previously announced private placement of 11 million units at a price of 50 cents per unit for gross proceeds of $5.5-million. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share for a period of two years at a price of 60 cents.
A total of 9,500,000 units were sold on a brokered basis and 1,500,000 units were sold on a non-brokered basis. Western Uranium Corporation, the Company's controlling shareholder, purchased 3 million units (included as part of the brokered units) for which no commission or agent's warrants was paid or issued.
Haywood Securities Inc. acted as the agent for the brokered portion of the offering and received a cash commission and a corporate finance fee totaling $155,000 and 310,000 agent's warrants. Each agent's warrant is exercisable to purchase one common share for a price of $0.60 for a period of 12 months. In addition, a finder's fee totaling $85,000 was paid and 170,000 finder's warrants, having the same terms as the agent's warrants, were issued to two parties, including RK Equity Capital Markets LLC.
Proceeds of the private placement will be used to fund ongoing engineering and development studies for the Company's lithium project in Nevada, including additional drilling of the lithium deposit to conform to National Instrument 43-101 requirements, and for general corporate purposes. All of the securities issued pursuant to the private placement are subject to a hold period expiring September 7, 2009. |
