Neo Lithium Corp., Toronto, Canada, (TSXV:NLC; OTCQX:NTTHF; FSE:NE2) has announced the closing of the previously announced equity investment by Contemporary Amperex Technology Co. Limited (SZSE: 300750), whereby CATL, through a subsidiary controlled by CATL, subscribed for 10,217,503 common shares of Neo Lithium at a price of C$0.84 per Common Share (the “Issue Price”) for gross proceeds to Neo Lithium of C$8,582,702, and representing approximately 8% of issued and outstanding shares of the Company. The Common Shares issued to CATL are subject to a 4-month statutory hold period expiring on April 15, 2021. With the proceeds of the equity investment from CATL, the Company has strong net cash position of approximately C$35 million.
Following the TSXV’s review and recommendation of the current trading price relative to the Issue Price and time lapsed since announcing CATL’s intention to invest in the Company, the insider group has not been permitted to participate in the concurrent financing at the Issue Price.
“The closing of the CATL strategic investment validates the quality of our 3Q project and the capabilities of our management team. It further strengthens our long-term commitment and focus on our Project as we work together with CATL to bring 3Q into full development by building a comprehensive financing plan” commented Constantine Karayannopoulos, Chairman of Neo Lithium. “On behalf of the board, I am delighted and honoured to formally welcome CATL as a new shareholder and we look forward to working with them to advance the 3Q Project into construction and ultimate production.”
CATL is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales in battery systems for new energy vehicles and energy storage systems. In 2019, the company’s EV battery sales volume reached 40.25 GWh worldwide, and making it the world leader in annual EV battery consumption volume (source SNE Research).
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.
The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.