Rodinia Lithium (CVE:RM)(OTCQX:RDNAF) said Thursday that it plans to boost the size of its previously announced potash stream financing to $4.5 million.
size will be increased to 4.5 million subscription receipts at a price
of $1.00 each, on a non-brokered private placement basis.
The prior proposed financing was for 3.0 million subscription receipts, for proceeds of $3.0 million.
Each subscription receipt will be exchangeable into a unit consisting
of one non-voting potash stream preferred share and one half of a
common share purchase warrant.
Each whole warrant will allow the
holder to acquire one common share of the company at a price of 45
cents for a period of 18 months following the closing date of the
Holders of the potash stream preferred shares will be
entitled to receive a cumulative, preferential cash dividend linked to
the potash price and the revenue generated by the company from its Salar
de Diablillos project, located in Salta Province, Argentina.
deal will avoid share dilution with the company monetizing the
by-product potash that is being extracted from its lithium assets.
capital raised will go toward building a pilot plant and completing a
feasibility study for the company's flagship Salar de Diablillos
Initially, each potash stream preferred share will
provide for an annual cumulative preferential cash dividend at a
floating per share rate over the issue price of 9 per cent, plus a
potash price adjustment, payable annually on the last day of January
following the relevant completed fiscal year.
dividend rate will be reset so that holders will be entitled to receive
quarterly dividends in an amount equal to the total amount of net potash
revenue generated from the project for that quarter divided by 20
million - the maximum number of preferred shares that will be authorized
in the capital of the company.
Net potash revenue will be
calculated based on the quantity of potash sold and the potash sales
price realized, less a potash production cost of $185.00 per tonne of
Closing of the offering will be subject to obtaining the required TSX Venture Exchange approval.
is a Canadian mineral exploration and development company with a
primary focus on lithium exploration and development in North and South
America. The company is also exploring the commercialization of a
significant potash co-product that is expected to be recoverable through
the lithium harvesting process.
de Diablillos lithium-brine project contains a recoverable resource of
2.82 million tonnes lithium carbonate equivalent and 11.27 million
tonnes potassium chloride equivalent.
In May, the company said
it had successfully harvested sylvinite at its Diablillos project.
Sylvinite, a potash and sodium chloride, was harvested during operation
of its pilot engineering program being conducted on site.
company also holds 100 per cent mineral rights to approximately 70,000
acres in Nevada's lithium-rich Clayton Valley in Esmeralda County.
Clayton Valley project is located in the only known lithium-brine
bearing salt lake in North America, and looks to represent the only new
source for domestic lithium carbonate supply.