Southern Lithium Corp. Announces Closing of Second and Final Tranche of Private Placement
Vancouver, January 5, 2017 - Southern Lithium Corp. (the "Company") (TSX-V: SNL) announces that further to its news releases dated November 1, 2016 and December 9, 2016, it has completed the second and final tranche of its non-brokered private placement of 48,000 units ("Units") at a price of $0.25 per Unit for aggregate gross proceeds of $12,000 (the "Offering"). Each Unit consists of one common share (a "Share") and one Share purchase warrant of the Company (a "Warrant"). Each Warrant will entitle the holder to purchase one Share (a "Warrant Share") at an exercise price of $0.35 per Warrant Share for a period of 18 months from the date of issuance until June 21, 2018; however, if the closing sales price of the Company's Shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSX Venture Exchange ("TSXV") (or such other securities exchange, quotation system or market on which such common shares are listed and where a majority of the trading volume of such common shares occurs) is $0.50 or greater for a period of ten (10) consecutive trading days, the Company may, within five days of such event, provide notice by way of press release to the subscribers of early expiry, and thereafter the Warrants shall expire on that date which is thirty (30) days from the date such notice is given (the "Acceleration Clause").
In connection with the first and second tranche of the Offering, the Company paid additional finders fees of a total of $33,200 in cash and issued 132,800 finder's warrants ("Finder's Warrants") in accordance with the policies of the TSXV. Each Finder's Warrant is convertible into one Share (a "Finder's Warrant Share") at a price of $0.35 per Finder's Warrant Share for a period of 18 months from the date of issuance until June 21, 2018, subject to the Acceleration Clause.
All securities issued pursuant to the Offering are subject to a hold period expiring on April 22, 2017. The proceeds raised will be used to further develop the Scotch Creek project, repay indebtedness and for general working capital.
About Southern Lithium Corp. (TSX-V: SNL FSE: SL5)
Southern Lithium Corp. is a resource exploration company engaged in the business of acquiring and exploring minerals properties. Southern Lithium Corp. has assembled an experienced management team with a growth strategy to develop portfolio of Lithium projects. The Company's main objective is to add shareholder value through exploration and development of high quality resources through strategic acquisitions, joint ventures, and marketing while maintaining a lower risk profile through project diversification and sound, cost-effective financial management. With the potential acquisition of the Cruz property, Southern Lithium intends to establish its presence in the Pocitos basin and further deliver on its mission to secure technically superior lithium projects. The Company is only focusing on projects of the highest technical merit in favorable geopolitical jurisdictions.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Alexander"
Chief Financial Officer
For further information, please contact:
Sam Eskandari
Phone: +1.416.918.6785
Email: ir@southernlithium.com
Further information about the Company is available on our website at www.southernlithiumcorp.com or under our profile on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements, other than as required pursuant to applicable securities laws.
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