Argentina Lithium Applies to Extend Warrants

Rhea-AI Summary

Argentina Lithium & Energy Corp. (TSXV: LIT, FSE: OAY3, OTCQX: LILIF) has applied to the TSX Venture Exchange to extend the term of 16,630,000 outstanding warrants. These warrants, originally issued in a private placement in August 2022, are set to expire on August 11 and August 25, 2024. The company seeks to extend them to August 11 and August 25, 2027, respectively. The exercise price will remain at $0.38, with each warrant exchangeable for one common share of the company.

Notably, 9,100,000 of these warrants are held by company insiders, constituting a "related party transaction". The company has relied on exemptions from valuation and minority shareholder approval requirements, as the fair market value of insider-held warrants does not exceed 25% of the company's market capitalization. The amendment is subject to TSXV approval.

Positive

• Potential for additional capital if warrants are exercised
• Extension of warrant expiration provides more time for potential exercise

Negative

• Dilution risk for existing shareholders if warrants are exercised
• Related party transaction with 9,100,000 warrants held by insiders

News Market Reaction

-2.76%

1 alert

-2.76% News Effect

On the day this news was published, LILIF declined 2.76%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

TSX Venture Exchange (TSX-V):  LIT
Frankfurt Stock Exchange (FSE): OAY3
OTCQX Venture Market: LILIF

VANCOUVER, BC, July 24, 2024 /PRNewswire/ - Argentina Lithium & Energy Corp. (TSXV: LIT) (FSE: OAY3) (OTCQX: LILIF), ("Argentina Lithium" or the "Company") announces that the Company has made an application to the TSX Venture Exchange to extend the term of the outstanding warrants as follows:

• 16,630,000 warrants that are set to expire on August 11 and August 25, 2024 to be extended to August 11 and August 25, 2027 respectively. These warrants were originally issued under a private placement completed by the Company in 2 Tranches in August 2022.

The exercise price of the warrants will remain at $0.38.  Each warrant, when exercised, will be exchangeable for one common share of the Company.

The Company further reports that 9,100,000 of the 16,630,000 Warrants are held by insiders of the Company. As such, the extension of such Warrants constitutes, to that extent, a "related party transaction" within the meaning of Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Shareholders ("MI 61-101"). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 (and Exchange Policy 5.9), as the fair market value of the Warrants held by the insiders does not exceed 25% of the market capitalization of the Company.

The amendment is subject to the approval of the TSX Venture Exchange ("TSXV").

About Argentina Lithium

Argentina Lithium & Energy Corp is focused on acquiring high quality lithium projects in Argentina and advancing them towards production in order to meet the growing global demand from the battery sector. The Company's recent strategic investment by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., one of the world's leading automakers, places Argentina Lithium in a unique position to explore, develop and advance its four key projects covering over 67,000 hectares in the Lithium Triangle of Argentina. Management has a long history of success in the resource sector of Argentina and has assembled some of the most prospective lithium properties in the world renowned "Lithium Triangle". The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

ON BEHALF OF THE BOARD

"Nikolaos Cacos"

_____________________________________
Nikolaos Cacos, President, CEO and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements.  Generally, forward-looking statements can be identified by the use of terminology such as "anticipate", "will", "expect", "may", "continue", "could", "estimate", "forecast", "plan", "potential" and similar expressions. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments management of the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company; and future exploration and operating plans are forward-looking statements.

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SOURCE Argentina Lithium & Energy Corp.

FAQ

How many warrants is Argentina Lithium & Energy Corp (LILIF) seeking to extend?

Argentina Lithium & Energy Corp is seeking to extend 16,630,000 outstanding warrants.

What is the new expiration date for the warrants of Argentina Lithium & Energy Corp (LILIF)?

The company is applying to extend the warrants to August 11 and August 25, 2027, from their original expiration dates in 2024.

What is the exercise price of the warrants for Argentina Lithium & Energy Corp (LILIF)?

The exercise price of the warrants will remain at $0.38.

How many warrants are held by insiders of Argentina Lithium & Energy Corp (LILIF)?

9,100,000 of the 16,630,000 warrants are held by insiders of the company.