Rodinia Lithium Inc. Announces Cdn$10,000,000 Bought Deal Financing
January 18, 2011
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION TO THE UNITED STATES
Toronto, Ontario, January 18, 2011: Rodinia Lithium Inc. (TSXV:RM; OTCQX:RDNAF) (“Rodinia” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Dundee Securities Corporation (the “Lead Underwriter”) and including Byron Capital Markets Ltd., Macquarie Capital Markets Ltd. and Raymond James Ltd. (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 17,250,000 units of the Company, at a price of $0.58 per unit (the “Offering Price”) for aggregate gross proceeds in the amount of $10,005,000 (the “Offering”). Each unit shall consist of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to acquire one Common Share at an exercise price of $0.75 for a period of 18 months following the closing of the Offering.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,587,500 Units at the Offering Price, exercisable in whole or in part, up to 48 hours prior to the closing of the Offering. If this option is exercised in full, an additional $1,500,750 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $11,505,750.
The Company expects to file a preliminary short form prospectus with the applicable securities regulatory authorities to qualify the Units for distribution on January 24, 2011.
The net proceeds are intended to be used to fund expenditures on Rodina’s Diablillos property located in Argentina and for general working capital purposes.
The Offering is expected to close on or about February 8, 2011 and is subject to certain conditions, including but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
In connection with the Offering, the Company has agreed to grant the Underwriters a cash commission an amount equal to 6% of the Units sold pursuant to the Offering, excluding any proceeds raised from the sale of Units subscribed for by persons on a president’s list prepared by the Company, which shall not exceed more than 10% of the Offering (the “President’s List”), for which a 3% cash commission will apply. In addition the Company shall issue the Underwriters compensation warrants entitling the Underwriters to acquire that number of Common Shares equal to 5% of the total number of Units sold pursuant to the Offering, excluding the Units subscribed for under the President’s List (the “Compensation Warrants”). Each Compensation Warrant shall be exercisable to acquire a Common Share at a price equal to the Offering Price for a period of 18 months following the closing of the Offering.
This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares or Warrants in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Rodinia Lithium Inc.:
Rodinia Lithium Inc. is a Canadian mineral exploration company with a primary focus on lithium exploration and development in North and South America. The Company is positioned to capitalize on the expected increase in demand for lithium carbonate that is projected to result from the anticipated paradigm shift to mass adoption and use of key lithium applications like lithium‐ion batteries as well as glass ceramics, greases, pharmaceuticals etc.
Rodinia is currently exploring its Clayton Valley project in Nevada, USA, which surrounds the only lithium brine producer in North America, and its Diablillos project in Salta, Argentina.
Please visit the Company’s web site at www.rodinialithium.com or write us at firstname.lastname@example.org. Follow us on Twitter: http://twitter.com/RodiniaLithium
|For further information please contact
|Investor Cubed Inc.
||Vice-President, Corporate Development|
|Tel: +1 (647) 258-3311
||Tel: +1 (416) 309-2696|
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
Forward Looking Information
This document may contain or refer to forward looking information within the meaning of applicable securities laws, based on current expectations, including, but not limited to, mineralization projections, future exploration priorities, estimates and costs, projected capital and operating expenditures, future exploration plans and techniques, estimates regarding the timing and costs of exploration, mineral prices and future exploration plans, anticipating timing and completion of the Offering. Forward looking statements are subject to significant risks and uncertainties, including those risks identified by the Company in the annual information form of the Company, which is available under the SEDAR profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions are based on extensive technical and scientific analysis conducted by the management of the Company, the results of drill program and other exploration, the analysis of external consultants and information obtained by the Company from third parties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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