Li3 Energy, Inc.(OTCBB:LIEG) announced the closing of the second tranche of an $18 million funding plan with POSCO Canada Ltd. The second tranche consisted of a $10 million payment.
As quoted in the press release:
An investment to purchase $10 million of Units (with each Unit consisting of one share of common stock and a three-year warrant to purchase one share of common stock at an exercise price of $0.21) at a price of $0.16 per Unit;
Li3 has agreed to reduced the strike price of the existing warrants issued to POSCAN from the initial $8 million investment (September 2011) from $0.40 to $0.21;
Li3, CEO, Luis Saenz, commented:
This marks an important accomplishment and milestone in the history of Li3. We are extremely pleased to have closed this funding with our Strategic Partner POSCO, who has now become our largest shareholder with approximately 26% of Li3′s outstanding common stock. As previously stated, achieving this pricing at a premium to our current price is testament to the strength of Maricunga as a project. I would like to thank POSCO for their continued commitment and support, we look forward to working together to advance Maricunga and unlock its exciting potential as one of the lowest cost lithium projects worldwide.