PRESS RELEASE
February 7, 2017
VANCOUVER, Canada - -
Southern Lithium Corp. (TSX-V: SNL) (FSE: SL5) ("Southern"
or "the Company") is pleased to announce a
Non-Brokered Private Placement (the "Private Placement") to raise gross proceeds of up to CDN$1.0 Million.
The company will issues 4,000,000
units (each "Unit") at a purchase price of $0.25 per Unit, for
gross proceeds of up to $1,000,000. Each Unit will consist of one (1) common
share ("Common Share") of the Company and one (1) non-transferable
share purchase warrant ("Warrant").
Each Warrant will entitle
the holder to acquire one (1) Common Share at an exercise price of $0.35 for a
period of 18 months from the closing date of the Private Placement. In the
event that the Company's common shares trade at a closing price greater than
$0.50 per share for a period of 10 consecutive trading days at any time after
the closing date, the Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof and in such case the Warrants will expire
on the 30th day after the date hereafter referred to as the ("Forced
Conversion Feature") on which such notice is given by the Company.
The private placement is
subject to TSX Venture Exchange approval. There will be a hold period of four
months and one day on all securities issued under this financing.
About the Cruz Property
Through its joint venture partner Millennial
Lithium Corp. (TSX-V: ML) (OTCQB: MLNLF), the Company has executed a formal
option agreement with Proyecto Pastos Grandes S.A. (“PPG SA”), a wholly owned
subsidiary of Millennial, to be granted an option to acquire an eighty percent
(80%) interest in the PPG SA’s Cruz Property in the Pocitos Salar Basin in
Salta Province, Argentina.
The Cruz Property is located in the heart of
South America’s Lithium Triangle (northern Chile, northwestern Argentina and
southwest Bolivia). The property encompasses 2,500 hectares in the Pocitos
salar basin in Salta Province, Argentina, and lies 11 kilometers south of ADY
Resources Limited’s lithium brine resource in the Salar del Rincón Basin.
The Cruz property is adjacent to the Rincon
volcanic center that defines the southern limit of the Rincon salar basin,
where ADY Resources Limited is extracting lithium brine, and the northern limit
of the Pocitos salar basin, where the Cruz property is located. Both properties
lie along the structural belt that hosts the important lithium resources of the
region, and at the junction of a large north-south fault system and the
northwest-southeast megastructure along which lies the Rincon volcano, the
possible source of the lithium brine in both salar basins.
The 60-kilometer long Pocitos salar basin has
previously only been drill tested with a shallow 12-hole program in the 1970s,
by an Argentinean government agency “Direccion General de Fabricaciones
Militares”. To date, this is the only confirmed exploration drilling conducted
in the Pocitos basin. The hole that produced the best results is near the
southeast edge of the Cruz property boundary, and averaged 417 parts per
million; note that these results are considered historical and cannot be confirmed
under NI 43-101 standards.
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.
Further
information about the Company is available on our website at www.southernlithium.com
or under our profile on SEDAR at www.sedar.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
“David
Alexander”
Chief Financial Officer
For
further information, please contact:
Southern Lithium Corp.
Sam Eskandari
Phone: +1.416.918.6785
Email: ir@southernlithium.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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