Advantage Lithium Corp. entered into a definitive agreement to acquire South American Salar Minerals Pty Ltd from Orocobre Limited and Miguel Alberto Peral for CAD 34.9 million.
Advantage Lithium Corp. (TSXV:AAL) entered into a definitive agreement to acquire South American Salar Minerals Pty Ltd from Orocobre Limited (ASX:ORE) and Miguel Alberto Peral for CAD 34.9 million on March 16, 2017. The purchase Agreement superceded prior letters of intent. Under the terms of the deal, Orocobre and Peral will recieve 46.3 million and 8.2 million shares of Advantage, respectively, as consideration with share lock-up to apply post-closing. A pooling agreement will be entered into between Advantage, Orocobre, Peral and certain Advantage insiders at the Closing, pursuant to which the parties will agree not to sell their shares of Advantage for staged periods at 12, 18 and 24 months after the closing. Orocobre and Peral will also receive 2.6 million and 0.45 million warrants of Advantage, respectively. Each warrant is on the same terms as issued by Advantage in the financing, exercisable for one share of Advantage at an exercise price of CAD 1 per share for a period of two years.
The transaction is subject to regulatory approvals, including the approval of TSX Venture Exchange, shareholder and Director approvals of Advantage Lithium, completion of due diligence, completion of equity financing by Advantage Lithium, execution of definitive agreement and other customary conditions. As of March 27, 2017, TSX Venture Exchange has accepted for filing documentation. The deal is expected to close in March 31, 2017.