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NRG Metals Completes Formation of Strategic Alliance with Chengdu Chemphys Chemical Industry Co.
VANCOUVER, British Columbia, Nov. 16, 2017 (GLOBE NEWSWIRE) -- NRG Metals Inc. (“NRG” or the “Company”) (TSX-V:NGZ) (OTCQB:NRGMF) (Frankfurt:OGPN), is pleased t
About this update from Lithium South Development Corporation
[{"type":"text","content":"VANCOUVER, British Columbia, Nov. 16, 2017 (GLOBE NEWSWIRE) -- NRG Metals Inc. (“NRG” or the “Company”) (TSX-V:NGZ) (OTCQB:NRGMF) (Frankfurt:OGPN), is pleased to announce that, further to its news release of October 17, 2017, the Company has completed various agreements to give effect to its strategic alliance with Chengdu Chemphys Chemical Industry Co., Ltd. (“Chemphys”) to advance the exploration and development of the Company’s Hombre Muerto North Lithium Project (“HMN Project”) located in the Salta and Catamarca Province area where most of the lithium production occurs in, Argentina. Adrian Hobkirk, President and CEO of the Company quoted, “We are very pleased with the investment in NRG by Chemphys and establishing a relationship with a high purity lithium manufacturer in China that supplies its products to the battery and energy markets. With the completion of this private placement, and the financial support of warrant and option holders, the Company is now fully funded to carry out its planned work program on the HMN Project.” Ms. Alison Dai, of Chemphys is quoted, “We are pleased to have formalized our strategic partnership with NRG and are committed to working with NRG’s team to expedite the development of the HMN Project.” Private Placement and Shareholder Approval The Company completed the first tranche of a non-brokered private placement with an affiliate of Chemphys for gross proceeds of CAD$980,000 million. A second tranche of the placement is expected to be completed in coming weeks, which will bring the total amount subscribed by Chemphys to CAD$1.6 million. The Company had previously announced that Chemphys would be subscribing for gross proceeds of CAD$1.4 million, which at that time would have represented approximately 15% of the Company’s outstanding shares. The placement was increased to a total of 16,000,000 units for gross proceeds of CAD$1.6 million. Upon completion of the second tranche of the placement, Chemphys will hold approximately 15% of the shares of the Company that are expected to be outstanding after giving effect to the second tranche and assuming no other shares are issued. The increase in the placement reflects the increase in the outstanding share capital of the Company upon numerous option and warrant exercises since the placement was initially discussed betwe...