- Arena Minerals will raise up to $10M through a non-brokered private placement of subscription receipts
- Proceeds from the offering will be applied primarily to the acquisition of the Sal de la Puna lithium brine project from Centaur Resources Pty Ltd
- Lithium Americas Corp. will be acquiring $6 million of subscription receipts in the offering
- Lithium Americas is a Canadian-based company advancing to production the Caucharí-Olaroz lithium brine project
- Arena Minerals Inc is a lithium and copper exploration company
- Arena Minerals Inc. (AN) opened trading at C$0.17 per share
Arena Minerals (AN) has launched a non-brokered private placement of subscription receipts for gross proceeds of up to $10,000,000.
Proceeds from the offering will be applied to the acquisition of the Sal de la Puna lithium brine project from Centaur Resources Pty Ltd. and for exploration and development expenditures and general corporate purposes.
Lithium Americas Corp. will be acquiring $6 million of subscription receipts in the offering. Under LAC’s subscription agreement with Arena, and provided it holds at least 7.5 per cent of Arena’s common shares, LAC has been granted the right to maintain its percentage ownership interest in Arena by participating in future financings and to appoint a nominee to the Arena board of directors as long as it holds at least 10% of Arena’s common shares.
Ganfeng Lithium Co., Ltd holds a contractual right to participate in the offering to maintain its percentage ownership interest in Arena.
Upon successful closing of the company’s share purchase agreement with Centaur Resources Pty Ltd., the subscription receipts will be exchanged for units of Arena Minerals.
Will Randall, President and Chief Executive Officer of Arena, commented on the offering.
“Thanks to the support shown by Ganfeng Lithium, and today’s equity investment by Lithium Americas, I am pleased to confirm that upon closing of this offering, Arena will be fully funded to close the transformative acquisition of the Sal de la Puna Project in Salta, Argentina. Indeed, this financing provides the Company with sufficient working capital to advance our lithium projects towards our ultimate goal of becoming a low-cost supplier to the lithium carbonate industry.”
Lithium Americas is a Canadian-based company advancing to production the Caucharí-Olaroz lithium brine project in partnership with Ganfeng in Argentina and developing the Thacker Pass lithium project in Nevada, USA.
Arena Minerals, a lithium and copper exploration company, has developed a proprietary brine processing technology using brine-type reagents derived from the Antofalla project with the objective of producing more competitive battery-grade lithium products.
Arena Minerals Inc. (AN) opened trading at C$0.17 per share.
