Western Lithium Arranges US$20 M Royalty Financing for Oilfield Drilling Additives Facility and Lithium Demonstration Plant
Western Lithium USA Corporation (WLC.TO) has entered into a Royalty Purchase Agreement with RK Mine Finance (Master) Fund II L.P. (Red Kite) pursuant to which Red Kite has agreed to pay to Western Lithium up to US$20 million in consideration for the sale of a royalty on its Kings Valley Project, located in Nevada, USA. An initial tranche of US$11 million will be funded concurrently with the closing of the royalty arrangement. A second tranche of US$9 million will be funded upon completion of the engineering and design of the lithium demonstration plant and once certain regulatory assurances have been received. Closing of the royalty arrangement is expected to occur on or about February 6, 2013.