Lithium South closes $6.46-million private placement

Oct 26, 2021

2021-10-26 12:41 ET – News Release

Mr. Adrian Hobkirk reports

LITHIUM SOUTH ANNOUNCES CLOSING OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT

Lithium South Development Corp. has closed its oversubscribed non-brokered private placement, issuing an aggregate of 16.15 million units at a price of 40 cents per unit to raise gross proceeds of $6.46-million.

Each Unit is comprised of one common share (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will allow the holder to purchase one Share of the Company at a price of $0.60 per Share for a period of three (3) years from the date of closing of the Private Placement.

Proceeds of the Private Placement will be used to advance the Company’s Hombre Muerto North lithium project, located in Salta Province, Argentina, and for general working capital purposes.

All securities issued will be subject to a four month hold period and the Exchange Hold Period.

The Company paid finder’s fees of $426,368 and issued 1,065,920 finder’s warrants (the “Finder’s Warrants”) to Nathan Rotstein and Canaccord Genuity Corp. The Finder’s Warrants are non-transferable and exercisable at $0.60 per Finder’s Warrant for a period of three (3) years.

President Adrian F.C. Hobkirk commented: “We are pleased to have received such strong support from the investment community. This financing will allow the Company to complete its objective of potentially expanding the high-quality lithium resource at the HMN Li Project and moving it forward to a Feasibility Study.”

About Lithium South

Lithium South is focused on developing the Hombre Muerto North lithium project (HMN Li Project), located on the Hombre Muerto Salar, a major lithium-producing salar in Argentina. The property is adjacent to land under development by the Korean multinational corporation POSCO, which acquired the ground from Galaxy Resources Ltd. for US $280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, utilizing conventional evaporation extraction. The Company is focused on expanding the known resource and evaluating alternative extraction methods for the HMN Li Project.

We seek Safe Harbor.

https://www.lithiumsouth.com/