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Lithium Australia secures A$18m loan

2nd March 2018

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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JOHANNESBURG (miningweekly.com) - ASX-listed Lithium Australia (LIT) has secured an A$18.27-million convertible note facility from US institutional investor Arena Investors.

"Lithium Australia has previously announced our intention to proceed with the large-scale Sileach pilot plant programme and to recommission the Very Small Particle Company cathode pilot plant. The Arena facility is a major element of the funding package required for these endeavours to be successfully implemented," MD Adrian Griffin said.

The unsecured notes have a face value of A$21-million and, subject to certain conditions, would be issued to LIT at a discount of 13%, which would be drawn down in six separate tranches, each with a 12-month maturity.

LIT will receive the first A$3.04-million upon signing of the convertible note deed and issued under the company's existing placement capacity; A$4.35-million for the second tranche which may be drawn after shareholder approval which must be obtained within 45 days of the date of signing the convertible note deed; and A$2.7-million for each of the remaining four tranches, with a minimum of four months between drawdowns or such other time as permitted by the ASX.

Arena is also entitled to options in connection with each tranche, subject to shareholder approval, equal to 40% of the face value of the notes exercisable at a price equal to 130% of the average volume weighted average price of the company's shares for the 20 consecutive trading days prior to the relevant issue date of that option.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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