Lithium Chile closes $7.97-million private placement

Executive Summary

• Lithium Chile Inc. closed its brokered private placement, issuing 15.95 million units at $0.50 per unit for total gross proceeds of $7.975 million.
• Each unit includes one common share and one warrant (exercise price $0.70, five‑year term); agents received cash commissions and broker warrants as compensation.
• Proceeds will be used to advance mineral projects in Argentina and Chile, fund general & administrative expenses, and provide working capital.

Key Details

• Units Issued: 15.95 million units @ $0.50 per unit → $7,975,000 gross proceeds (including full exercise of the agent’s option).
• Unit Composition: 1 common share + 1 common‑share purchase warrant (exercise price $0.70, exercisable for five years from closing).
• Lead Agent & Bookrunner: Canaccord Genuity Corp.; syndicate includes Moneta Securities (Alberta) Corp.
• Financing Exemption: Listed issuer financing exemption under NI 45‑106 Part 5A (Coordinated Blanket Order 45‑935). Units are freely tradable for Canadian purchasers pending TSX‑V approval.
• Agent Compensation:
• Cash commission = 8 % of gross proceeds (reduced to 4 % on “president’s list” sales).
• Broker warrants = 1,142,000 (8 % of units issued; reduced to 4 % on president’s‑list sales), each warrant exercisable at $0.50 for 24 months, subject to a statutory hold period of four months and one day.
• Insider Participation: Insiders subscribed for 200,000 units → $100,000 gross proceeds; treated as a related‑party transaction under TSX‑V Policy 5.9 and MI 61‑101, exempted from valuation/minority approval because the transaction is <25 % of market cap.
• Use of Proceeds: Advance existing mineral properties in Argentina & Chile, cover general & administrative expenses, and provide working capital (as outlined in amended offering document dated Sept. 24 2025).
• Company Overview (retained for context): Exploration firm with 11 properties covering ~108 kha in Chile and ~29 kha in Argentina; completed NI 43‑101 resource report, PEA, and prefeasibility study for the Arizaro project.

Notable Quotes

“We are pleased to close this well‑supported offering, which provides important capital to advance our high‑potential projects and create long‑term value for our shareholders.” – Steven Cochrane, President & CEO

Materiality Assessment: Material – Positive (significant capital raise that funds ongoing exploration activities).