(MENAFN- GlobeNewsWire - Nasdaq) CALGARY, Alberta, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Legacy Lithium Corp. (the“ Company ” or“ Legacy ”) is pleased to announce that it has invested C$1,000,000 in Pan American Energy Corp. (“ Pan Am ”) pursuant to the first tranche of Pan Am's private placement, pursuant to which Pan Am raised gross proceeds of C$2,595,000 (the“ Private Placement ”).
Pursuant to the Company's investment in the Private Placement (the“ Investment ”), the Company received 2,500,000 units of Pan Am (each, a“ Unit ”), with each Unit comprised of one common share of Pan Am (each, a“ Share ”) and one Share purchase warrant of Pan Am entitling the holder to acquire one Share (each, a“ Warrant Share ”) at a price of C$0.55 per Warrant Share until November 10, 2025. All securities issued to the Company pursuant to the Investment are subject to a statutory hold period, in accordance with applicable securities laws, expiring on March 11, 2024.
Pan Am is an exploration stage company engaged principally in the acquisition, exploration and development of mineral properties containing battery metals in North America. Pan Am executed an option agreement in Canada with Magabra Resources, providing for the right to acquire up to a 90% interest in the drill-ready Big Mack Lithium Project, located 80 km north of Kenora, Ontario. Pan Am has also entered a property option agreement with Horizon Lithium LLC providing for the right to acquire a 100% interest in the Horizon Lithium Project, located within Esmeralda County – Tonopah Lithium Belt, Nevada, USA. The Company was“spun-out” from Pan Am on April 21, 2023. Pan Am intends to use the net proceeds raised from the Private Placement for general and administrative expenditures, investor awareness and promotional expenditures and general working capital purposes.
The investment was unanimously approved by the independent directors of the Company, with Jason Latkowcer (who is the CEO of Pan Am) abstaining. Pursuant to the Investment, the Company invested a portion of the cash proceeds received from the Company's sale of the Green Energy Property to Anson Resources Limited with the expectation of receiving a return on this capital while the Company evaluates various strategic transactions and opportunities to advance its business interests and generate value for shareholders.
On Behalf of the Board of Directors
CEO & Director
Phone: (604) 294 3020
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words“could”,“intend”,“expect”,“believe”,“will”,“projected”,“estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events.
In particular, this press release contains forward-looking information relating to, among other things, Pan Am's intended use of proceeds from the Private Placement, the Company's expectation that it will receive a return on the capital invested in the Investment and the Company's ability to undertake a transaction to advance its business interests and generate value for shareholders. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information, including the assumption that Pan Am will use the proceeds of the Private Placement as currently anticipated, that the Investment will generate returns for the Company and that the Company will be able to identify a transaction that advances its business interests and generates value for shareholders. Those assumptions and factors are based on information currently available to the Company. Although such statements are based on reasonable assumptions of the Company's management, there can be no assurance that any conclusions or forecasts will prove to be accurate.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include: the risk that Pan Am does not use the proceeds from the Offering as currently expected; risks associated with the ownership of the Units, including that the price of the common shares of Pan Am are subject to volatility, that the liquidity of the common shares of Pan Am may be limited and that, as a result of these factors and other factors associated with the ownership of securities in an exploration-stage mining issuer, the Company may never realize a return on the Investment; and that the Company may be unsuccessful in identifying a transaction which has the prospect of advancing its business interests and generating value for shareholders and, even if such a transaction is identified, the Company may fail to realize the benefits from such a transaction, whether as a result of the execution of the transaction, the Company's management of the business or assets acquired following the transaction, or otherwise. The forward-looking information contained in this release is made as of the date hereof, and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
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