Critical Elements Announces the Closing of a Non-Brokered Private Placement of $3,000,000

Rhea-AI Summary

Critical Elements Lithium Corporation has finalized a non-brokered private placement, raising $3.0 million by issuing 10,000,000 common share units at $0.30 each. Each unit includes one common share and half a share purchase warrant, with the latter allowing purchase at $0.45 for two years. The funds will enhance the Rose Lithium-Tantalum project and support general operations. The offering awaits TSX Venture Exchange approval, with securities subject to a four-month hold ending December 21, 2020. The project feasibility indicates a pre-tax NPV of CA $1,257 million.

Positive

• Successfully raised $3.0 million through a private placement.
• Funds will be used to advance the Rose Lithium-Tantalum project with strong financial projections.
• The project has a pre-tax NPV of CA $1,257 million and IRR of 48.2%.

Negative

• None.

MONTRÉAL, QC / ACCESSWIRE / August 24, 2020 / Critical Elements Lithium Corporation (the "Corporation" or "Critical Elements") (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) is pleased to announce the closing of a non-brokered private placement of 10,000,000 common share units (the "Units") of the Corporation at a price of $0.30 per Unit for aggregate gross proceeds of $3.0 million (the "Offering").

Each Unit is comprised of one common share of the Corporation and one-half of one common share purchase warrant of the Corporation (each full warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share of the Corporation at a price of $0.45 per common share at any time on or before that date which is 24 months after the closing date of the Offering.

The Corporation paid $71,164.80 in finder's fees under the Offering and an insider of the Corporation also participated in the Offering for an amount of $30,000.

The net proceeds of the Offering will be used by the Corporation to advance the Rose Lithium-Tantalum project as well as for working capital and general corporate purposes.

The Offering is subject to TSX Venture Exchange approval and all securities issued will be subject to a four-month hold period expiring on December 21, 2020.

About Critical Elements Lithium Corporation

Primero Group recently completed the first phase of its Early Contractor Involvement agreement with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement and construction of the wholly-owned Rose Lithium-Tantalum project on a lump sum turnkey basis that is in line with the Project's feasibility study published November 29, 2017. The project feasibility study is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li₂O), US $1,500/tonne for technical-grade lithium concentrate (6% Li₂O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return ("IRR") for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value ("NPV") is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17-year mine life. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li₂O and 133 ppm Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical and chemical grade spodumene concentrate and 429 tonnes of tantalite concentrate.

FOR MORE INFORMATION:

Jean-Sébastien Lavallée, P.Geo.
Chief Executive Officer
819-354-5146
jslavallee@cecorp.ca
www.cecorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Critical Elements Lithium Corporation

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https://www.accesswire.com/603082/Critical-Elements-Announces-the-Closing-of-a-Non-Brokered-Private-Placement-of-3000000

FAQ

What is CRECF's recent funding announcement?

Critical Elements Lithium Corporation announced a $3.0 million non-brokered private placement on August 24, 2020.

How will the funds from the private placement be used?

The net proceeds will advance the Rose Lithium-Tantalum project and for general corporate purposes.

What is the price of the warrants in CRECF's private placement?

Each warrant entitles the holder to purchase common shares at $0.45 for 24 months.

What is the anticipated net present value (NPV) of the Rose project?

The project's anticipated pre-tax NPV is CA $1,257 million.