Vancouver, BC, Canada – November 10, 2020– Rock Tech Lithium Inc. (the "Company" or “Rock Tech”) (TSX-V: RCK; Frankfurt: RJIB) announces that it will conduct a non-brokered private placement(the “Offering”) of up to 5,882,353 units (the “Units”) of the Company at a price of $0.85 per Unit for gross proceeds of up to $5,000,000.
"Increasing investor interest is further confirmation of our low-operating cost, vertically-integrated lithium hydroxide converter as presented in our recently completed Preliminary Economic Assessment,” said Simon Bodensteiner, Chief Executive Officer of Rock Tech. “This Offering ensures that the Company is well positioned and can accelerate progress towards key milestones on both upstream and downstream strategic fronts in 2021.”
Proceeds from the private placement will be used to fund a Pre-Feasibility Study (“PFS”) on a lithium hydroxide converter, continuing investigations of novel lithium processing circuits, further development and permitting work at the Company’s Georgia Lake lithium project and general working capital.
Each Unit will consist of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share of the Company at a price of$1.00 per share for a period of 24 months from the date of closing, subject to accelerated expiry in certain circumstances.
A portion of the Offering may be completed pursuant to the British Columbia Securities Commission’s BC Instrument 45-534 – Exemption from Prospectus Requirement for Certain Trades to Existing Security Holders (the “Existing Security Holder Exemption”). Under the Existing Security Holder Exemption, existing shareholders resident in British Columbia may purchase up to $15,000 in Units from the Company without qualifying as an Accredited Investor (as that term is defined in National Instrument 45-106 – Prospectus Exemptions)or other prospectus exemption subject to the requirements of the instrument.
Similar exemptions exist in certain other jurisdictions. The Company has set November 6, 2020 as the record date for the purpose of determining shareholders entitled to participate in the Offering in reliance on the Existing Shareholder Exemption. Existing shareholders who wish to participate in the Offering should contact Brad Barnett, Chief Financial Officer of the Company, at the contact information set forth below.
In addition to conducting the Offering pursuant to the Existing Shareholder Exemption, the Offering will also be conducted pursuant to other available prospectus exemptions.
The closing of the Offering is subject to regulatory approval including that of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a four-month hold period.
On behalf of the Board of Directors,
Director, Chief Executive Officer
For further information, please contact:
Chief Financial Officer
Rock Tech Lithium Inc.
777 Hornby Street, Suite 600
Vancouver, B.C., V6Z 1S4
Telephone: (778) 358-5200
Facsimile: (604) 670-0033
Disclaimer and Cautionary Statement Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.
All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.