Li3 Energy, Inc. (LIEG) Raises Funds for Chile Project
Seeking Alpha Analyst Since 2008
Li3 Energy, Inc. reported that the company has entered into three capital market transactions to raise funds for the acquisition and exploration of a property in South America. The transactions raised gross proceeds of $6 million.
In March 2010, Li3 Energy, Inc. agreed to purchase a 60% interest in the Maricunga Project, located in Chile. The company believes that this property is prospective for mineral reserves that can be extracted commercially.
Li3 Energy, Inc. sold 10.6 million units in a private placement offering at a price of $0.27 per unit. Each unit comprises one common share of the company’s stock, and one warrant to purchase 0.5 shares of common stock at a price of $0.40 per share. The warrant must be exercised within three years. This offering raised gross proceeds of $2.9 million.
Li3 Energy, Inc. raised $1.1 million from investors that exercised an outstanding warrant to purchase the company’s stock at $0.15 per share. These investors received a new warrant to purchase common stock at a price of $0.50 per share.
Li3 Energy, Inc. raised $2 million from Pacific Road Capital Management, an institutional investor, on the same terms contained in the private placement offering. The company agreed to use the funds only for the work program at the Maricunga Project.
For more information on the company, go to li3energy.com
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