Vancouver, British Columbia--(Newsfile Corp. - October 10, 2017) - International Lithium Corp. (TSXV: ILC) (the "Company" or "ILC") announces that it will conduct a private placement of convertible securities having a face value of up to $700,000 from a non-arms' length party, being a significant shareholder of the Company, TNR Gold Corp. The convertible securities bear interest at the rate of 15% per annum, payable January 31 and have a maturity date of January 31, 2019. The lender may convert at any time, all or a portion of the principal into common shares of the Company at a price of $0.14 per common share. The Company has the right to repay the convertible loan, at any time on the last business day of the month on 10 days notice.
The post-conversion ownership in ILC by TNR Gold Corp., given the current number of outstanding shares of ILC will be 13.6%.
The private placement is subject to the approval of the TSX Venture Exchange ("TSXV").
The proceeds of the private placement will be used for general working capital purposes. All private placement securities will be restricted from trading for a period of four months from closing.
The proposed issuance of private placement securities to a non-arms' length party also constitutes a related-party transaction under MI 61-101. Because the Company's shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.
