Liberty One Lithium Corp closes C$1mln financing; set to explore Pocitos project

Liberty One Lithium Corp (CVE:LBY, OTCQB: LRTTF) confirmed on Friday it had closed its previously announced private placing and raised gross proceeds of C$1mln.

As reported, the cash will be used to partly finance its up to 80% acquisition of the Pocitos West project in Argentina. It issued 2mln units at 50 cents each.

Each unit consists of one company share and one-half of a share purchase warrant, entitling the holder to purchase a further share for 75 cents on or before July 20, 2018.

The firm is to explore the Pocitos project in joint venture with  Millennial Lithium Corp.

Liberty will pay Millennial $5.5mln and also incur $1mln of staged expenditures to earn a 70% interest.

Liberty One said earlier this month that a geophysical survey would start at the project and Salta-based Tecnologia y Recursos (TyR) had been contracted for the work.

“We are pleased to have the ability to quickly move forward in determining the extent of the mineral assets at Pocitos West,”said Morgan Tincher, Liberty’s chief financial officer.

“Our JV partners at Millennial have extensive exploration experience in the area, and we are very much on the same page with their proposed work plan and executable timeline.”

He added the aim was to progress with an initial NI 43-101 report.

The 60km long Pocitos salar basin was previously drill tested with 12 shallow holes in 1979 by an Argentine government agency.

The most significant result was a shallow drill hole, which averaged 417 parts per million (ppm) lithium and 15,300 parts per million potassium, but this is not under the NI 43-101 standard of exploration applicable today.

At the Pocitos West project area, previous geophysics indicate that the body of brine extends toward the west beneath the alluvial fans on trend with the Liberty One property at depths of up 500 feet or more.

Liberty One shares added 1.49% to $0.68 in Toronto.

Story by ProactiveInvestors