Alset Announces Amendment to Financing Terms, Outlines Work Program in Mexico
THUNDER BAY, ONTARIO--(Marketwired - Sep 21, 2016) - Alset Energy Corp. (TSX VENTURE:ION) ("Alset" or "the Company") announces an amendment to the terms of its previously announced private placement (news release dated July 29, 2016) (the "Offering"). The Company will now raise up to $1 million on the following basis:
Each flow through unit ("FT") will be issued at $0.30 and will consist of one (1) flow through common share and one common share purchase warrant, each common share purchase warrant being exercisable at $0.40 cents for 24 months. Flow through funds will be used to advance the Wisa Lake spodumene and Champion Graphite projects in Ontario.
Each non flow-through unit ("NFT") will be issued at $0.25 and will consist of one (1) common share and one (1) common share purchase warrant, each exercisable at $0.30 cents for 24 months.
The common shares comprising the FT and NFT units and the common shares issuable upon exercise of the common share purchase warrants will be subject to a four (4) month hold period commencing on the closing date, being the date of issuance of the units. The Company will pay reasonable expenses and fees incurred in connection with the Offering and agents or finders may, in accordance with TSX Venture Exchange policy, be paid a negotiated cash fee as a percentage of the gross proceeds raised in the Offering. The proposed financing and associated terms are subject to TSX Venture Exchange approval.
Tim Oliver, President of Alset commented: "After we announced the initial private placement we took another look at our work programs. We've now refined our plans and have revised the costs for the screening and resource definition drilling downwards. A combination of low drilling costs and the decision to limit resource definition drilling to the three most attractive salars, should allow a lower cost program than we initially planned for. We also discovered some valuable new information regarding the extensive inventory of sediment samples from prior investigations, and the history of commercial salt production from pumped brine in three of the seven salars. If our programs are successful, we hope to come back to the market for another raise at a higher price than the current private placement."
The Company believes that the proceeds from the revised financing will be sufficient to fund all of the planned work including:
- completion of the permitting for the drilling program;
- the drilling program itself;
- a process chemistry assessment of the technical feasibility of correlating brine quality with the chemical make-up of residue remaining within the sample soil voids after drying. Alset possesses thousand of sediment samples. If the correlation is possible, it will provide a valuable tool for assessing the chemical nature of the brine;
- a concept assessment for refurbishing retired commercial salt production wells in three salars: Caliguey, Saldivar and Colorada (The Colorada salt works were active just four years ago). The purpose will be to determine the feasibility of conducting pump tests and pilot evaporation tests using existing infrastructure. The assessment will include research into the technical feasibility of well refurbishment, determination of salt production facility ownership and owner's willingness to assist with the program, permitting requirements, and coordination with local communities and landowners.
Qualified Person
Clinton Barr, PGeo, Vice-President of Exploration for Alset, is the qualified person responsible for this release.
About Alset Energy
Alset Energy is a TSX-V listed junior exploration company focused on exploring and acquiring mineral properties containing the metals needed by today's high-tech industries. The Company is actively exploring in Mexico and Canada.
On behalf of the Board of Directors of Alset Energy Corp.,
Timothy Oliver, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections
Contact
Tim Oliver
(520) 603-9258
www.alsetenergy.ca