Advantage Lithium Corp. announced the closing of its previously announced private placement financing of 26,667,000 subscription receipts of the Company for aggregate proceeds of approximately $20 million. The funds will primarily be used to develop the advanced Cauchari asset, including its large defined exploration target, and five other wholly owned (100%) Argentine assets comprising ~85,543 hectares. The Cauchari project lies close to Orocobre’s lithium production facility and has the potential for fast-tracked, low cost production.
Cauchari hosts an inferred resource containing an estimated 230 million cubic metres of brine at ~380 mg/l Li and 3,700 mg/l K. This is equivalent to 470,000 tonnes of lithium carbonate (~88,000 tonnes lithium metal) and 1.62 million tonnes of potash (KCl – equivalent to ~840,000 tonnes of potassium).
The project is adjacent to Lithium America’s Cauchari project. Lithium Americas recently proposed a combined equity and debt financing of USD $286M investment by Bangchak Petroleum Public Company Ltd. and GFL International Ltd. to put its project into production.
David Sidoo, CEO and President, of Advantage Lithium, commented, “With this $20M financing complete, we intend to move forward rapidly with Orocobre to close the Acquisition, and begin drilling at Cauchari, by the end of March, focusing on the large exploration targets. As the recent $286M investment in LAC’s adjacent Cauchari project has shown, this is one of Argentina’s premier lithium districts. The Cauchari project that Advantage Lithium and Orocobre will jointly own, is in close proximity to Orocobre’s lithium production facility, which is on track to produce 15,000 tonnes of lithium carbonate this year. With a 27,771 hectare land package and initial, near-surface resource already in place, we’re looking forward to the upcoming work programs to advance and develop Cauchari.”
Further to the Company’s news release of January 24, 2017, the Company is actively working with Orocobre to complete all tasks and finalize the definitive agreements under which the Company will acquire up to 75% of Orocobre’s Cauchari project and a 100% interest in five other lithium brine projects, comprising a total of 85,543 ha, located in the northern provinces of Jujuy, Salta and Catamarca in Argentina’s lithium triangle. Completion of the Acquisition is expected to occur before March 31, 2017.