Arena Minerals Announces $2.8M Financing Led by Leading Lithium Producer Ganfeng Lithium Co. and Divests Gold Asset to Astra Exploration Ltd.

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TORONTO, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Arena Minerals Inc. ("Arena" or the "Company") (TSX-V: AN) announces that it is undertaking a non-brokered private placement of units of the Company (the “Units”) at a price of $0.05 per Unit for gross proceeds of $2,800,000 (the “Offering”). Each Unit shall consist of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share of the Company at $0.15 for a period of 36 months from the date of issuance. This price represents a 43% premium to the last trading price of Arena.

GFL International Co., Ltd, a wholly owned subsidiary of Ganfeng Lithium Co. (“Ganfeng”; 1772.HK; OTCQX: GNENF), an established global lithium carbonate producer, will acquire 39,525,596 Units for gross proceeds of $1,976,280 pursuant to the terms of the offering. Ganfeng is one of the world’s leading lithium manufacturers and is listed on the Shenzhen Stock Exchange and on the Hong Kong Stock Exchange (Ticker 1772.HK) since 2018 when it raised US$ 440 million in an IPO. Ganfeng is a top three lithium compound producer, and the largest producer of lithium metal globally. Ganfeng has a strong presence in Argentina, including a 51% ownership in Minera Exar whom operates the Cauchari Lithium project in Jujuy province.

The proceeds from the Offering will be used by Arena to develop its Antofalla lithium brine property in the puna region of Argentina, for potential acquisitions, and for general corporate purposes. Arena’s Antofalla properties comprise a total of 6,000 hectares covering a portion of the Antofalla salar located in Catamarca, Argentina. The properties are immediately south and adjacent to Albemarle Corporation’s similarly names Antofalla project.

Mr. Eduardo Morales, Executive Chairman of Arena, commented: “We are thrilled to have Ganfeng Lithium, one of the world’s largest and most successful companies in the battery materials sector, participate in the Offering and join us as a major investor and strategic partner. The proceeds of the Offering will assist Arena in developing the Antofalla project as well evaluating further acquisitions in Argentina, where Arena’s team has world class expertise and competitive advantages. Our objective is to ultimately own and operate several high-quality assets and supply lithium chloride to a centralized chemical plant. We are convinced this is the future of the brine lithium industry, allowing assets to be developed without incurring excessive capital costs while reducing the technical risk of having to build and operate a chemical plant.” Mr. Morales is the former President of Rockwood Litio Ltda (Chile), where he oversaw the development of the world’s premier lithium brine asset in the Salar the Atacama, Chile. Rockwood was sold in 2014 for USD 6.2 Billion.