Vancouver, British Columbia–(Newsfile Corp. – December 14, 2020) – Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN) (the “Company” or “Wealth”), announces a non-brokered private placement (the “Placement”) of up to $15,000 000 units (the “Units”) at a price of $0.10 per Unit (the “Offer”) for gross proceeds of up to $1,500,000. Each Unit will consist of one common share of the Company (a “Share”) and one-half common share purchase warrant (a “Warrant”). Each whole warrant entitles its holder to acquire one additional share of the Company for a period of two years from the date of issue at a price of $0.15 per share.
Finder’s fees may be payable to arm’s length parties who introduced the Company to certain underwriters participating in the Offering. All securities issued under the Offer are subject to a four-month hold period, during which time the securities may not be traded. The closing of the offering is subject to the approval of the TSX Venture Exchange.
The net proceeds of the offering are intended to be used to fund the exploration and development of Wealth’s Atacama project, as well as for general corporate purposes.
This press release does not constitute an offer to sell any of the aforementioned securities in the United States. None of the foregoing securities have been and will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any applicable state securities law and may not be offered or sold in the United States or to, or on behalf of or for the benefit of United States Persons (as defined in Regulation S of the 1933 Act) or persons in the United States not registered or exempt from these requirements of registration. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the aforementioned securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Debt Settlement Actions
The Company has arranged to settle an aggregate amount of approximately C$870,000 owed to insiders and trade creditors, through the issuance of approximately 8,700,000 common shares at a deemed price of C$0.10 per action. These securities will be subject to a hold period of four months from the date of issue. Completion of the debt settlement will not create any new controlling person and is subject to acceptance by the TSXV.
The Company further reports that Hendrik van Alphen, Director and CEO (the “Lender”), loaned an additional C$50,000.00 to the Company.
The loan has an 18-month term and bears interest at an annual rate of 8% compounded annually, payable on the maturity date. The Company has agreed to issue an aggregate of 500,000 non-transferable common share purchase warrants (the “Warrants”) to the lender. Each Enhanced Warrant will entitle its holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period of two years. All securities issued under the loan will be subject to a hold period of four months and one day in Canada from the date of issue. Funds available from the loan will be used for payments under the Company’s Atacama lithium project (“Atacama” or the “Atacama Project”).
Wealth remains concentrated in the lithium market as favorable global supply and demand patterns persist, which will benefit companies with quality lithium assets. The Company recently extended its memorandum of understanding with Uranium One (see press release dated October 14, 2020), which contemplates an environmentally responsible and efficient development program for the Atacama project using sorption technology. Although management has maintained contact with ENAMI since the expiry of Wealth’s memorandum of understanding with this entity (see press release of April 8, 2020), management has not seen any reciprocal movement to ensure cooperation. with the Chilean State or its agents. Management notes that Chile will have a presidential election in about a year, which should change the composition of the government and, by extension, ENAMI (by law, Chilean presidents cannot serve consecutive terms, and the Minister of Mines, who is appointed by the President, serves as President of ENAMI).
Due to the stalling of Wealth’s Atacama project, management has been working to monetize non-core assets, such as the Vapor and Harry lithium projects (see press release dated November 2, 2020). Other transactions that could add shareholder value to Wealth’s assets are being considered. Wealth management notes that the company’s CEO has extended personal loans to maintain working capital levels for the uninterrupted operation of the business (see press release dated October 23, 2020). Business expenses have been kept to a minimum. Management further announces that Tim McCutcheon, chairman of Wealth, is stepping down, although he will continue to assist the company, particularly in guiding Uranium One and Wealth towards a transaction on the Atacama project.
Hendrik Van Alphen, CEO of Wealth, said: “The lithium market is finally getting its due, as the world wakes up to a supply shortfall on the horizon, even despite demand moderation due to COVID-19. . Our Atacama project is world-class and has attracted attention in the lithium industry. Unfortunately, internal politics in Chile made the development timeline uncertain, which impacted Wealth’s position in the capital markets. We announced this fundraising to supplement cash to give the company the flexibility to wait out the political situation and provide headroom to complete other transactions to create shareholder value. I would also like to thank Tim McCutcheon for his service to society, we all wish him well in his future endeavours, and are pleased that he remains available to assist Wealth in its corporate development.”
About Wealth Minerals Ltd.
Wealth is a mineral resources company with interests in Canada, Mexico and Chile. The main objective of the Company is the acquisition and development of lithium projects in South America. To date, the company has positioned itself to work alongside existing growers in the prolific Salar de Atacama, where the company has a large licensing package.
The dynamics of the lithium market and the rapid increase in the price of the metal are the result of deep structural problems, with the industry responding to anticipated future demand. Wealth is positioning itself as a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration projects.
On behalf of the Board of Directors of
WEALTH MINERALS LTD.
“Hendrik Van Alphen”
Hendrik van Alphen
Chief executive officer
For more information, please contact:
Phone: 604-331-0096 ext. 3886 or 604-638-3886
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements , other than statements of historical fact, included herein, including, without limitation, the anticipated results of the exploration program of exploration activities, the Company’s expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, discovery and delineation of deposits/mineral resources/reserves, closing and amount of the Placement, as well as anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes these statements to be reasonable, it cannot guarantee that these expectations will prove to be correct. Forward-looking statements are generally identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume” and similar expressions, or are those which, by their nature, refer to future events. The Company cautions investors that the Company’s forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in the forward-looking statements due to a variety of factors, including operational and technical difficulties in relationship to mining exploration and development activities, the actual results of exploration activities, the estimate or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, production costs , capital expenditures, costs and timing of new deposit development, additional capital requirements, future lithium prices, changes in general economic conditions, changes in financial markets and in commodity market demand and price, lack of investor interest in the Placement, accidents, conflicts of e labor and other hazards of the mining industry, delays in obtaining government approvals, permits or fina the execution or completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title conflicts, the Company’s failure to obtain any necessary permits, consents, approvals or authorizations, including acceptance by the TSX-V, required for the placement, timing and possible outcome of any pending litigation, environmental issues and liabilities and risks related to joint venture activities, and other risks and uncertainties disclosed in the company’s most recent interim MD&A and filed with certain securities commissions in Canada. All of the Company’s Canadian public disclosure documents are accessible via www.sedar.com and readers are urged to review these documents, including technical reports filed with respect to the Company’s mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this press release or incorporated by reference herein, except as otherwise required by law.