EMERALD PARK, Saskatchewan--(BUSINESS WIRE)--PRAIRIE LITHIUM CORPORATION (the “Company” or “Prairie Lithium”) is pleased to announce the completion of a $7,506,000 private placement [of common shares and convertible debentures] led by PFM Capital Inc. The offering was upsized from $4,000,000 as a result of excess demand.
Prairie Lithium has established itself as a dual stream developer of lithium resource and lithium extraction technology. Prairie Lithium’s project is uniquely situated in the Williston Basin, in Saskatchewan, Canada, which has historically been known for oil & gas and potash production. The development of these previous resource industries in the area allows the Company to utilize the existing skills and infrastructure in the application of its rapid lithium extraction technology.
The price of battery grade lithium chemicals is soaring in 2021, surpassing all time highs previously set in 2018. Without the rapid development of new lithium resources, supply shortages of lithium are anticipated by 2025 as a result of increased battery production. The global demand for lithium could increase by 5X by 2030, as a result of auto manufacturers’ committing to offer additional electric models.
Prairie Lithium’s North American based project is well positioned, as Canada and the United States look to execute their critical mineral strategies that would see North America take a larger stake in the global battery material supply chain.
“PFM is excited to partner with Prairie Lithium which has established itself as a Western Canadian leader in this burgeoning industry,” said Jason Moser, Partner and Senior Director of Investments at PFM Capital Inc. “We believe the Company can capitalize on strong macro fundamentals and advance the industry in Saskatchewan and beyond,” he continued.
The Company will use the proceeds of the private placement to fund resource exploration and development opportunities, develop the Company’s lithium extraction and refining process and for general corporate and working capital purposes.
Stikeman Elliott LLP acted as counsel to Prairie Lithium in respect of the private placement.
About Prairie Lithium
Prairie Lithium is a private lithium resource and technology developer situated in the heart of the resource-rich Williston Basin in Saskatchewan, Canada. For more information about the Company, please visit www.prairielithium.ca or contact firstname.lastname@example.org.
About PFM Capital
PFM Capital Inc. is Saskatchewan’s largest private equity investment firm with over $710 million in assets under management across several funds. Based in Regina, Saskatchewan, PFM’s niche focus allows investors to benefit from the Prairies’ economic strengths by taking advantage of the firm’s established local contact network and long-term track record. PFM is employee-owned and has been managing private equity and venture capital funds since 1993. For more information, please visit www.pfm.ca.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Prairie Lithium’s business and affairs. Such forward-looking statements include, but may not be limited to, those with respect to: (i) Prairie Lithium’s ability to produce both lithium carbonate and lithium hydroxide from the lithium solution extracted using its Lithium Ion Exchange (Plix) technology; (ii) Prairie Lithium’s land holdings containing brine with the expected lithium concentrations; (iii) Prairie Lithium’s anticipated exploration and project development activities; (iv) Prairie Lithium’s continued expertise in brine hydrochemistry and hydrogeology; (v) the potential for the lithium extraction industry in Saskatchewan, a continued stable legal regime governing the industry in Saskatchewan, and continued support from all levels of government; (vi) price of battery grade lithium and future global demand; and (vii) use of proceeds from the private placement.
These forward-looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Although Prairie Lithium believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the lithium industry in general, operational risks in relation to the Company's activities, the uncertainty of estimates and projections relating to production, health, safety and environmental risks, constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the lithium battery industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
All of the forward-looking statements made in this press release are qualified by these cautionary statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Prairie Lithium assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities legislation.