Li3 Energy, a US-based Lithium exploration company, has announced the close of $10m in second tranche funding from Posco Canada (PosCan), a regional subsidiary of South Korea-based steel maker Posco. The deal concluded an $18m financial commitment made by Posco in August last year.
The investment will come through PosCan buying $10m units at a price of $0.16 per unit. In a press release, Li3 defined a unit as “consisting of one share of common stock and a three-year warrant to purchase one share of common stock at an exercise price of $0.21”. In addition, Li3 agreed to reduce the strike price of PosCan’s existing warrants from the initial $8m from $0.40 to $0.21. Li3 will also allow PosCan to buy an aggregate of 5 million shares of common stocks for the next two years at $0.15 per share.
Luis Saenz, chief executive of Li3, said in a statement: “This marks an important accomplishment and milestone in the history of Li3. We are extremely pleased to have closed this funding with our strategic partner Posco, [which] has now become our largest shareholder with approximately 26% of Li3′s outstanding common stock.”
The US-based firm will use the investment to expand its project goals while fuelling the search for more lithium.