Established in 1992 in Zhejiang province, China, Ningbo Shanshan Co., Ltd. is focused on two core business verticals: a) garment manufacturing and sales, and b) lithium-ion battery materials. After 10 years of development, Shanshan has become one of China’s largest lithium-ion battery materials providers.
Rodinia intends to use the net proceeds from this private placement to continue the development of its key projects and for working capital purposes. Will Randall, President and CEO of Rodinia Lithium said "We expect that these funds, along with funds previously raised, will allow us to aggressively pursue development of Diablillos and to further our goal of delineating an NI 43-101 compliant resource on the property in the coming months. We are excited by the opportunity to work and consult with a leading lithium carbonate end user to unlock the value of our flagship Diablillos and Clayton Valley projects for the benefit of all Rodinia shareholders. It was a pleasure to have representatives of Shanshan visit our Diablillos property last month and we hope to continue developing our relationship."
Pursuant to the terms of the Private Placement, Shanshan has the right, subject to certain conditions, to nominate one director to the board of Rodinia. Upon completion of the Private Placement, and together with shares already owned prior to the Private Placement, Shanshan will own 5,140,000 Common Shares of the Company, representing approximately 7.6% of issued and outstanding Common Shares of the Company. In addition, Shanshan holds 1,300,000 common share purchase warrants of the Company, which upon exercise would result in Shanshan holding approximately 9.5% of the Company.
The Common Shares will be subject to statutory resale restrictions expiring on March 26, 2011. Closing of the private placement is subject to receipt of all necessary regulatory approvals, including final TSX Venture Exchange approval.
Rodinia Lithium Inc. is a Canadian mineral exploration company with a primary focus on lithium exploration and development in North and South America. The Company is positioned to capitalize on the expected increase in demand for lithium carbonate that is projected to result from the anticipated paradigm shift to mass adoption and use of key lithium applications like lithium-ion batteries as well as glass ceramics, greases, pharmaceuticals etc.
Rodinia is currently exploring its Clayton Valley project in Nevada, USA, which surrounds the only lithium-brine producer in North America, and its Diablillos project in Salta, Argentina.