- An initial investment to purchase $8MM of Units (each Unit consists of one share of common stock and a three-year warrant to purchase one share of common stock at an exercise price of $0.40) at a price of $0.21 per Unit;
- A follow-on investment of $10MM of additional Units at $0.21 per Unit upon satisfaction of certain conditions, including (i) an NI 43-101 report concluding that proceeding to the Feasibility Study phase for the Maricunga project is warranted, (ii) completion of Li3's proposed work program and (iii) having the necessary permits and approvals in place for building and operating a brine test facility on the Maricunga property;
- The common shares purchased by POSCAN, shall be locked up and may not be sold until the earlier of: (i) 9 months after their issuance date or (ii) November 20, 2012;
- Board representation - Li3 shall appoint a director nominated by POSCAN to its Board of Directors and shall continue to nominate a POSCAN, designee at each annual meeting for as long as POSCAN, owns not less than 10% of the issued and outstanding shares of Li3;
- After the initial investment, POSCAN and Li3 shall discuss and evaluate the development, financing and construction of a test facility on the Maricunga property; in such event, Li3 shall (i) supply POSCAN brine and other materials and utilities and (ii) assist POSCAN in obtaining any rights, licenses and permits required to build this facility;
- Li3 is also providing POSCAN with registration rights, pro-rata preemptive rights with respect to future financings, and certain negative covenants in connection with the transaction.
Li3 Energy Teams With One Of The World's Largest Steel Manufacturers For Lithium Exploration
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.