TSXV-listed Namibian lithium developer Desert Lion Energy has entered agreements to settle $2 572 890.90 of its outstanding cash indebtedness owed to various arm's length creditors.
Desert Lion Energy is doing so through the issuance of 14 221 914 shares at an effective price of $0.1809 per share.
"This debt settlement represents a significant portion of the company's outstanding cash indebtedness to creditors and when combined with the equity private placement in December 2018, strengthens the company's balance sheet thus positioning us to execute on our previously announced exploration programme," says Desert Lion Energy CEO Tim Johnston.
The shares issued will be subject to a hold period of four months and one day from the date of completion of the debt settlement and the transaction is subject to subject to the approval of the TSXV.
Meanwhile, the company has also granted 3 500 000 stock options to directors, officers and consultants of the company – each option exercisable at a price of $0.10 per share for a period of five years.
Desert Lion Energy’s 2019 exploration and development programme will focus on increasing and optimising existing mineral resources estimates and advancement of the mine, concentrator and lithium conversion plant in Walvis Bay.
Following the completion of the equity financing in December 2018, the company is progressing with the next phase of exploration and development work to advance the Desert Lion Energy lithium project.
The next phase of exploration and evaluation work will focus on increasing the existing mineral resource estimates as well as the confidence therein, as well continuing with grassroots exploration over the company's exclusive prospecting licences.