Li3 Energy, Inc. (LIEG) Closes on Debt Financing
Li3 Energy, Inc. reported the successful completion of a capital market transaction with several private investors. The funds will be used to support company operations pending the completion of further financing by the company.
Li3 Energy said that the financing consisted of a bridge loan in the amount of $1.5 million from three private investors. The bridge loan is structured as an original issue discount note with a zero percent coupon due February 2, 2012. The company is required to pay $1.67 million at the maturity date to pay off the loan.
Li3 Energy reported that the loan is convertible into common stock at a price of $0.40 per share. The company also issued warrants to the private investors that allow them to purchase 1.5 million shares of common stock at a price of $0.50 per share. The warrants expire in five years.
Li3 Energy also announced that it has received $2.8 million in additional subscriptions in a pending equity financing offering that was initiated earlier in 2011. The funds will be used to purchase a 60% interest in the Maricunga Project which the company believes is a productive and commercial lithium property in northern Chile.
For more information on the company, go to li3energy.com
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