NRG Metals Inc. has completed a non-brokered private placement of two million units at a price of 10 cents per unit, raising gross proceeds of $200,000. Each unit comprises one common share and one transferable common share purchase warrant exercisable for a period of two years at an exercise price of 20 cents per share, provided that, in the event that the closing price of the company´s common shares on the TSX Venture Exchange is 40 cents or greater per common share during any 20-consecutive-trading-day period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4 p.m. Vancouver time on the 30th day after the date on which the company provides notice of such accelerated expiry to the warrantholders, and the warrantholders will have no further rights to acquire any common shares of the company under the warrant.
The company paid a finder´s fee of 8 per cent cash and 8 per cent finder warrants to Raymond James Ltd.
The private placement proceeds will be used, in addition to existing treasury funds, to finance the initial drill program at the Salar Escondido lithium project in Catamarca province, Argentina. The Salar Escondido project comprises approximately 29,180 hectares and covers a large basin roughly 20 kilometres by 40 kilometres in size, which is mostly covered by a series of overlapping alluvial fans. NRG´s technical team believes that a large salar with an area of at least 700 square kilometres developed in the basin about two million years ago.
As reported in a news release dated Nov. 21, 2016, the company tested the paleo-salar hypothesis by conducting a vertical electric sounding (VES) geophysical survey over the central part of the basin. The survey detected an extensive zone of very low resistivity, which management believes represents a zone of saturated saline brine that may contain lithium. The objective of the drill program will be to test this hypothesis.
A drill contractor has been identified, and the company is in the final process of finalizing the program. Full details on this phase 1 drill program will be announced in the immediate future.
About NRG Metals Inc.
NRG Metals is an exploration-stage company focused on the advancement of lithium brine projects in Argentina. In addition to the Salar Escondido lithium project, the company is evaluating the 3,287-hectare Hombre Muerto North lithium project in the province of Salta. The Hombre Muerto North project is located at the northern end of the prolific Hombre Muerto salar, adjacent to FMC´s producing Fenix mine and Galaxy Resources´ Sal de Vida development-stage project. As announced in a press release dated July 13, 2017, the company has filed an environmental impact study and applied for permits to drill the Hombre Muerto North project.