Lithium Ionic Announces Closing of Final Tranche of Oversubscribed Non-Brokered Private Placement

Executive Summary

• Lithium Ionic Corp. closed the second and final tranche of its non‑brokered private placement, issuing a total of 26,090,130 units at $0.70 per unit for gross proceeds of $18,263,091.
• The second tranche comprised 7,739,989 units raising $5,417,992; insiders purchased 947,929 units under the related‑party exemption.
• The company will issue 7,790,109 common shares to RTEK International DMCC as consideration for completing a NI 43‑101 feasibility study that targets a US$75.2 million CAPEX reduction.

Key Details

• Units Issued (Aggregate): 26,090,130
• Price per Unit: $0.70
• Total Gross Proceeds: $18,263,091
• Second Tranche Specifics:
• Units: 7,739,989
• Gross Proceeds: $5,417,992
• Unit Composition: 1 common share + 1 warrant (exercise price $0.90, exercisable for 24 months).
• Insider Participation: 947,929 units purchased; exempt from MI 61‑101 valuation/approval thresholds (<25% market cap).
• Use of Proceeds: Development of Brazilian lithium properties and general corporate purposes.
• Holding Period: Units subject to a four‑month hold period under applicable securities laws.
• RTEK Compensation: Issuance of 7,790,109 common shares to RTEK International DMCC for services related to the feasibility study; transaction pending TSXV approval.
• Feasibility Study Impact: Expected CAPEX reduction of US$75.2 million versus May 2024 baseline.

Notable Quotes

• “The successful closing of both tranches of our private placement provides essential capital to advance our Brazilian projects and underscores investor confidence in Lithium Ionic’s growth strategy.” – Blake Hylands, CEO & Director.