VANCOUVER, Canada – Southern Lithium Corp. (TSX-V: SNL FSE: SL5) (“Southern” or “the Company”) is pleased to announce that Southern Lithium Corp. has engaged the services of Small Cap Invest Ltd. (”SCI”), a Frankfurt-based business development and PR firm, to provide the company with public relations and business development support in Germany and Europe. Alexander Friedrich is the President and Chief Executive Officer of SCI.
SCI has had extensive experience and a strong track record of success working with promising growth companies in increasing their visibility and access to capital through SCI’s extensive network of experienced partners and investors in Europe. The SCI team has an extensive background in the European financial community and uses this to facilitate the listing of stocks, introductions to investors through road shows and trade shows, securing public funding and private financing, and a variety of other business development activities.
Southern Lithium’s CEO, Mr. Clive Massy commented, “I am extremely pleased to be working alongside SCI and Alexander Friedrich with purpose of increasing public awareness of Southern Lithium and presenting Southern Lithium to an expanding international investing audience. SCI’s track record simply increases my confidence that we will be successful in our objective.”
Southern Private Placement
As previously announced on February 7, 2017, the Company announced a non-brokered private placement of 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
Chief Financial Officer
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Southern Lithium Corp.
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.