Rock Tech Announces Private Placement to Increase Strategic Cash Reserves
Vancouver, BC, Canada – October 27, 2016 – Rock Tech Lithium Inc. (the “Company” or “Rock Tech”) (TSX-V: RCK; Frankfurt: RJIB) announces that it will conduct a non-brokered private placement of up to 3,333,334 units at a price of $0.90 per unit for gross proceeds of up to $3,000,000 (the “Offering”).
Each unit will consist of one common share of the Company and one half of one share purchase warrant. Each full warrant will entitle the holder to purchase an additional common share at a price of $1.45 per share for a period of 24 months from the date of closing, subject to accelerated expiry in certain circumstances.
“While Rock Tech Lithium’s planned activities in 2016 and 2017 are fully funded, increasing the Company’s cash position at this time will ensure we are positioned to capitalize on any battery metal opportunities that present themselves in the future,” said Martin Stephan, director and Chief Executive Officer of Rock Tech.
“It is an exciting time to be developing Rock Tech Lithium,” Mr. Stephan continued, “the recently ratified Paris Climate Agreement is just one of the many factors supporting the case for greener and cleaner energy. Lithium and other battery metals are, perhaps, the most critical ingredients for allowing nations to meet their emissions reduction targets. The lithium market is characterized, for at least the next eight years, by tight supply due to much higher demand than originally and even now anticipated. It would appear that many analysts remain unaware of the situation.”
The proceeds of the private placement will be used for further development of the Company’s Georgia Lake lithium property, the evaluation of additional opportunities and for general working capital purposes.
The closing of the private placement is subject to regulatory approval including that of the TSX Venture Exchange. All securities issued will be subject to a four-month hold period. A finder’s fee may be paid on the private placement.
On behalf of the Board of Directors,
Director, Chief Executive Officer
For further information, please contact:
Chief Financial Officer
Rock Tech Lithium Inc.
1021 West Hastings Street, Suite 900
Vancouver, B.C., V6E 0C3
Telephone: (604) 558-5123
Facsimile: (604) 670-0033
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.