LithiumBank Announces $2M Private Placement of Units

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

CALGARY, Alberta, Oct. 10, 2023 (GLOBE NEWSWIRE) -- LithiumBank Resources Corp. (TSX-V: LBNK) (the “Company” or “LithiumBank”) is pleased to announce a non-brokered private placement (the “Offering”) of up to $2,000,000 units (“Units”) at a price of $1.00 per Unit, for aggregate gross proceeds of $2,000,000.

Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $1.50 per Common Share for a period of 24 months from the date of issuance, subject to the policies of the TSX Venture Exchange (“TSXV”).

The Company expects to pay the following finders’ fees to certain eligible finders in connection with the Offering: (i) a cash commission of 6.0% of the gross proceeds raised under the Offering from investors introduced to the Company by the applicable finder; and (ii) such number of non-transferable common share purchase warrants of the Company equal to 6.0% of the Units sold under the Offering from investors introduced to the Company by the applicable finder.

The net proceeds received by the Company from the Offering are intended to be used for general administration and working capital. The securities offered pursuant to the Offering will be subject to a statutory hold period of four months and a day from the date of issuance. The Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSXV.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.