Pan American Lithium Corp. Announces Amendment of Share Option Agreement and Extension of Closing Date
June 30, 2010 TSX.V SYMBOL PL -Pan American Lithium Corp. (the “Company”) announces that it has entered into a letter agreement dated June 30, 2010, with Escondidas Internacional S.A. de C.V., a privately held Mexican corporation (“Escondidas”), and the shareholders of Escondidas (the “Shareholders”), whereby the parties have agreed to extend the closing date set out in the Share Option Agreement dated December 18, 2009 (the “Option Agreement”), as amended, from June 30, 2010 to October 31, 2010. In addition, the parties have agreed to amend certain substantive terms of the Option Agreement, as follows:
Upon option exercise and at closing, in exchange for 76% of the issued and outstanding shares of Escondidas, the Company will (i) continue to pay the sum of US$125,000 to the Shareholders, (ii) issue an aggregate of 5,000,000 common shares in the capital of the Company to the Shareholders, reduced from an amount of 10,300,000 common shares, and (iii) issue an aggregate of 5,000,000 warrants to the Shareholders (each, a “Warrant”), reduced from an amount of 7,500,000 Warrants. The terms of the Warrants are unchanged, with each Warrant entitling the Shareholder to acquire an additional common share of the Company at the exercise price of $0.50 per share for a period of two years from the closing date. In addition, the Company is now obligated to pay to the Shareholders the following sums: (i) US$500,000 6 months from the commencement of commercial production from the project (originally 6 months from the closing date), (ii) US$500,000 12 months from the commencement of commercial production from the project (originally 12 months from the closing date), and (iii) US$750,000 18 months from the commencement of commercial production from the project (originally 18 months from the closing date).
The parties have agreed to further amend the Option Agreement so that the Company is obligated to pay to the Shareholders US$8,000 per month, reduced from the original amount of US$25,000 per month until the earlier of the closing date or termination to cover costs relating to outstanding expenses, due diligence, legal fees and other general and administrative expenses of Escondidas.
The exercise of the option under the Option Agreement would allow the Company to receive an indirect, carried 25% interest in a joint venture between Escondidas and a third-party holding the brine concessions, to exploit and commercialize lithium chloride minerals and precious metals produced from such concessions.
On Behalf of the Board
PAN AMERICAN LITHIUM CORP.
http://www.panamericanlithium.com/iem/...73&S=17&L=1&N=13 |
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