Nevada Lithium completes $6 million private placement
Nevada Lithium Resources Inc. [NVLH-CSE, NVLHF-OTCQB, 87K-FSE] said Friday it has raised $6 million from a non-brokered private placement financing, with net proceeds earmarked for the company’s 100%-owned Bonnie Claire lithium project in Nye County, Nevada.
The company is planning to advance the project towards an updated preliminary economic assessment (PEA) and pre-feasibility study.
The private placement consisted of 48 million units priced at 12.5 cents per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one share at 17.5 cents for three years from the date of closing.
The company said the private placement was led by strategic investor Marcel Boekhoorn (SF Investments 1 BV) who acquired 10.8 million units for $1.36 million. Prior to completion of the offering, the strategic investor and its joint actor held 18.9 million shares and 16.6 million warrants, amounting to 8.9% of the issued and outstanding shares and approximately 15.6% on a partially diluted basis.
Following completing, the strategic investor and its joint actor own and control 29.8 million shares and 27.5 million warrants, representing 11.5% of the issued and outstanding shares and 19.9% on a partially diluted basis.
On Friday, the shares eased 7.14% or $0.01 to 13 cents in light trading volume. The shares currently trade in a 52-week range of 33 cents and 10.5 cents.
“Bonnie Claire is already one of the largest lithium resources in North America, and we think that this deposit has yet to reveal its best to us,’’ said Nevada Lithium CEO Stephen Rentschler.
Nevada Lithium recently announced the discovery of high-grade boron mineralization at the Bonnie Claire project. The company also said it has initiated work to examine any potential effects on metallurgy for the project.
Bonnie Claire has a current NI-43-101 inferred resource of 18.3 million tonnes of contained lithium carbonate equivalent (LCE), at a cut off grade of 700 ppm Li2.
Boron is the fifth element on the periodic table, with a combination of physical properties, including hardness, light weight and heat resistance. Boron is a valuable industrial mineral with extensive and diverse uses, including computer screens, fertilizers, powerful magnets for wind turbines, ceramics, insulation and more. Roughly 85% of current production is sourced from Turkey and the majority of refined Boron specialty and advanced materials are imported from China.
Rentschler said the company is grateful for the continued support of its strategic shareholders. “This support has forcefully driven the positive progress at Bonnie Claire as illustrated only a few months ago by the identification of our high-grade Lithium Boron mineralized zone,’’ he said.