Western Lithium USA Corporation

Western Lithium USA Corporation

October 14, 2009 09:51 ET

Western Lithium Announces Completion of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2009) -


Western Lithium Canada Corporation (the "Company") (TSX VENTURE:WLC) is pleased to announce that it has completed its previously announced private placement of an aggregate of 17,476,000 units (the "Units") at a price of $0.95 per Unit for aggregate gross proceeds to the Company of $16,602,200. Each Unit is comprised of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase an additional common share for a period of eighteen months at a price of $1.25 per warrant, subject to adjustment in certain events. Western Uranium Corporation, the Company's controlling shareholder, purchased 1,476,000 Units in the private placement.

GMP Securities L.P., Byron Capital Markets and Haywood Securities Inc. acted as co-lead agents ("Agents") in respect of the private placement. For their services in connection with the offering, the Agents received a cash commission equal to $897,294 and were granted 944,520 compensation options. Each compensation option is exercisable to purchase one common share of the Company for a price of $0.95 for a period of eighteen months, subject to adjustment in certain events. In addition, a finder's fee totaling $28,500 was paid to RK Equity Capital Markets LLC in respect of the issue and sale of 750,000 units for which the Agents were not paid a cash commission.

All securities issued pursuant to the private placement, including shares issued upon exercise of the warrants and compensation options, are subject to a four-month hold period expiring on February 15, 2010.

Proceeds of the private placement will be used to fund ongoing engineering and development studies for the Company's lithium project in Nevada, including additional drilling of the lithium deposit to conform to National Instrument 43-101 requirements, and for general corporate purposes.

About Western Lithium

Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world's largest(1) strategic, scalable and reliable sources of high quality lithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of mobile electronics and hybrid/electric vehicles.

(1) Western Lithium has completed a National Instrument 43-101 resource estimate for the envisioned initial stage of development. The current resources are part of the historical estimate of 11 million tonnes of lithium carbonate equivalent (LCE) prepared by Chevron Resources and ranks in size behind deposits in Chile (32 million tonnes LCE), Bolivia (29 million tonnes LCE), North Carolina (14 million tonnes LCE) and the DRC (12 million tonnes LCE). Source: Roskill Information Services Ltd., R. Keith Evans, National Research Council and Western Lithium estimates. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources under National Instrument 43-101, the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. 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.

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