Western Lithium USA Corporation (TSX:WLC)(OTCQX:WLCDF) announced on Monday that Orion Mine Finance has provided the company with US$5.5 million, without issuing any new shares, by amending the terms of a royalty agreement between Orion and Western Lithium.
Under the new terms, the company will receive US$2 million of new capital from Orion, and will receive a US$3.5 million advance from the remaining $9 million funding obligation of Orion under the existing royalty facility. The proceeds will be used to fund the Hectatone(TM) organoclay business, a lithium demonstration plant and general working capital.
As quoted in the press release:
“With these additional funds, our treasury will increase to approximately US$12.5 million, which is expected to be enough capital to complete the 10,000 ton per year Hectatone(TM) organoclay plant that is currently under construction in Nevada,” said Jay Chmelauskas, President and CEO.