Posts Tagged First Lithium Resources

First Lithium Arranges Brokered Private Placement

First Lithium Resources Inc. has entered into an agreement with Byron Capital Markets, a division of Byron Securities Ltd., to finance a best efforts private placement of up to five million units of the company at a price of 10 cents per unit for gross proceeds of up to $500,000. Each unit shall consist of one flow-through common share and one common share purchase warrant entitling the holder to acquire one non-flow-through common share of the company for a period of two years following the closing date at an exercise price of 15 cents per share in the first year and 25 cents per share in the second year. In consideration for its efforts, the agent will receive a cash commission representing 8 per cent of the gross proceeds and agent’s warrants equal to 10 per cent of the units sold. Each agent’s warrant shall entitle the agent to purchase one non-flow-through common share of the company at a price of 10 cents per share for a period of 12 months following the closing date.

The proceeds of the private placement will be used by the company to finance exploration expenditures on its Canadian properties.

No Comments

First Lithium Closes Private Placement and Gets Exchange Appoval of Yukon Claims

First Lithium Resources Inc. has finished the final closing of its non-brokered private placement financing. The offering raised gross proceeds of $330,000. A total of 3.3 million units of the company were issued in the private placement at a price of 10 cents per unit. The units were issued in two tranches, whereby 600,000 units issued were issued on June 30, 2009, and 2.7 million units issued in the second and final tranche were issued on July 9, 2009. Each unit comprises one common share and one warrant, with each warrant entitling the holder to acquire one common share of the company for a period of two years following the closing date at an exercise price of 15 cents per share in the first year and 20 cents per share in the second year. Finders’ fees comprising $6,000 cash and 60,000 warrants are payable to Northern Securities Inc. with the same terms as those to be issued pursuant to the private placement and $20,000 cash only is payable to Frontline Investment Managers Ltd. All securities issued in the private placement are subject to a four-month hold period in Canada from the date of issuance. All currency references are in Canadian dollars. The moneys will be used for general working capital and for further development of the company’s Canadian properties.

The TSX Venture Exchange has accepted for filing a purchase agreement dated June 16, 2009, between First Lithium Resources and Blair Naughty, whereby the company is to acquire 25 quartz claims located in the Yukon, 95 kilometres south of Dawson City, Yukon. In consideration, the company will pay $75,000 in cash and issue 800,000 shares in the first year. Work commitments are $25,000 in exploration expenditures by June 1, 2010, and $225,000 by Sept. 30, 2010. Mr. Naughty will retain a 3-per-cent net smelter return royalty, of which 1 per cent can be purchased by the company at any time before the commencement of commercial production upon payment of $1-million in cash, shares or combination thereof, subject to the exchange approval.

No Comments

FIRST LITHIUM ACQUIRES YUKON PROPERTY NEAR UNDERWORLD’S WHITE GOLD PROJECT

First Lithium Resources Inc. has acquired lode quartz mineral claims located in the Yukon, east of the White gold property held by Underworld Resources Inc. The MCI claims are 15 kilometres east of Underworld’s recently announced┬ádiscovery of 103 metres of 3.4 grams per tonne gold and cover just over 1,000 hectares in area. Underworld is exploring sediment and vein-hosted gold targets at the 169-square-kilometre (845-claim) White gold property.

MCI’s claims appear to host similar metasedimentary stratigraphy as the Underworld White gold project area as outlined in mapping by Gordey and Ryan from GSC mapping.

MCI will pay the vendor, Blair Naughty, $75,000 cash, issue 800,000 shares of MCI and grant a 3-per-cent net smelter return royalty, with an option to buy back 1 per cent for $1-million. The company also agrees to spend $25,000 by June 1, 2010, and an additional $225,000 by Sept. 1, 2010, as a work commitment. This transaction is subject to TSX Venture Exchange approval.

This news release has been prepared on behalf of the First Lithium Resources’ board of directors, which accepts full responsibility for its contents. The technical contents of this release have been reviewed and approved by J. Wayne Murton, PEng, a qualified person as defined by National Instrument 43-101.

, , , , , ,

No Comments