Jilin Jien and IQ owned North American Lithium closes QT financing

North American Lithium Inc. has closed a subscription receipts and convertible debenture financing, raising $32.5 million from Canadian credited investors from BC, Ontario, Quebec, and US and international investors from Hong Kong and Cayman Islands.

GMP Securities L.P. acted as placement agent and Boughton Law Corporation acts as legal counsel to North American Lithium.

On June 13, 2017, Richmond Road Capital Corp. (TSX-V: RRD.H), a capital pool company, announced the entering into a letter of intent to acquire all of the issued and outstanding common shares of North American Lithium Inc., which will constitute as Richmond Road Capital’s Qualifying Transaction (QT) and North American Lithium’s going public transaction.

As a condition of completion the QT, North American Lithium intended to complete an equity financing to raise a minimum of $25 million and up to maximum of $75 million.

Prior the financing, North American Lithium is majority owned by 9554548 Canada Inc. (75%), a company wholly owned by Jien International Investment Ltd., which in turn is wholly owned by Panshi, China based Jilin Jien Nickel Industry Co., Ltd. (吉林吉恩镍业股份有限公司). Ressources Québec, a subsidiary of Investissement Québec (IQ), owns the remaining 25%.

North American Lithium owns a mine project located in Abitibi, near Val d’Or, Quebec. The mine was previously owned by Canadian Lithium/RB Energy. In October 2014, RB Energy sought CCAA protection with a total debt of $182 million.

The mine is under development with commissioning of an open pit lithium carbonate mine and processing plant nearing completion. The mine is expected to produce approximately 23,000 tonnes of battery grade lithium carbonate on an annualized basis.

photo credit: North American Lithium Inc.

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.