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.