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Critical Elements Announces a Non-Brokered Private Placement of Units
MONTREAL, QUEBEC / ACCESSWIRE / July 31, 2020 / Critical Elements Lithium Corporation ...
About this update from Critical Elements Lithium Corporation
[{"type":"text","content":"Critical Elements Announces a Non-Brokered Private Placement of UnitsMONTREAL, QUEBEC / ACCESSWIRE / July 31, 2020 / Critical Elements Lithium Corporation (the \"Corporation\" or \"Critical Elements\") (TSX-V:CRE) (US OTCQX:CRECF) (FSE:F12) is pleased to announce a non-brokered private placement of up to 10,000,000 common share units (the \"Units\") of the Corporation at a price of $0.30 per Unit for aggregate gross proceeds of $3.0 million (the \"Offering\").Each Unit will be comprised of one common share of the Corporation and one-half of one common share purchase warrant of the Corporation (each full warrant, a \"Warrant\"). Each Warrant will entitle the holder thereof to purchase one common share of the Corporation at a price of $0.45 per common share at any time on or before that date which is 24 months after the closing date of the Offering.The net proceeds of the Offering will be used by the Corporation to advance the Rose Lithium-Tantalum project as well as for working capital and general corporate purposes.The Corporation may pay finder's fees of 6.0% of the gross proceeds from the sale of the Units sold under the Offering payable in cash. The Offering is subject to TSX Venture Exchange approval and all securities issued will be subject to a four-month hold period.About Critical Elements Lithium CorporationPrimero Group recently completed the first phase of its Early Contractor Involvement agreement with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement and construction of the wholly-owned Rose Lithium-Tantalum project on a lump sum turnkey basis that is in line with the Project's feasibility study published November 29, 2017. The project feasibility study is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6% Li2O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return (\"IRR\") for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value (\"NPV\") is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see p...