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Tuesday, 26 February 2013
Rock Tech Lithium secures $600,000 loan for working capital needs
Rock Tech Lithium (CVE:RCK) has inked a C$600,000 loan agreement with BTI International, a private firm specializing in providing venture finance to small cap companies.
The new funds will be used for working capital and to deal with "short term" obligations, the lithium and graphite explorer said.
The loan is secured over all of the company's present and after-acquired personal property, and will bear interest at a rate of 10% per year.
The principal amount of the loan, along with accrued interest, will mature on February 25, 2014.
The loan and the interest can be converted into an option to acquire shares of Rock Tech at a price of 10 cents each.
"The conversion price negotiated is a strong signal regarding our opinion of the current market valuation of the company," said the company's interim CEO and VP of exploration, Afzaal Pirzada.
The Canadian junior has lately been unveiling a series of high grade graphite drilling results from its Lochaber property in Quebec.
Just yesterday, shares of the company moved higher after it unveiled 108.36 metres of graphitic carbon (Cg) at various depths, with grades ranging from 1.60% to 12.78% Cg in hole PB-12-16, including 67.95 metres at 2.18% Cg, 13.08 metres at 2.84% Cg, 23.72 metres at 2.78% Cg and 3.61 metres at 1.60% Cg.
The 4,600 metre program, which was announced back in December, included both step out and in fill drilling on electromagnetic conductors "A" and "C", which were identified on the Plumbago area of the property in geophysical surveys last September.
Rock Tech says that its geophysical surveys and drill programs have focused exclusively on the Plumbago area of the property, which includes only four of the 32 claims subject to the property option agreement.
The company is planning on a maiden NI 43-101 resource estimate for the property, which will be based solely on this area.
But further upside potential exists, as surface samples taken from the Kelly, McLaren and Burke areas of the property returned graphite results up to 22%, the junior explorer said.
The Canadian junior is looking to benefit from the development of two metals critical for industrial production, as the company is also reviewing proposals from geological and engineering companies regarding its planned preliminary economic assessment (PEA) report at its Georgia Lake lithium project in Ontario.