Li-FT Power Ltd. (TSXV: LIFT) has introduced a strategic, non-brokered personal placement to boost round $21.25 million. The mineral exploration firm focuses on the acquisition, exploration, and improvement of lithium pegmatite tasks in Canada.
Li-FT Energy’s flagship venture is the Yellowknife Lithium Project (YLP) within the Northwest Territories. Furthermore, the corporate holds 3 early-stage exploration properties in Quebec, and the Cali Mission within the Northwest Territories, which is a part of the Little Nahanni pegmatite group.
Strategic Funding: A Enhance for Canadian Lithium Tasks
The lithium firm’s newly introduced personal placement consists of:
- Circulation-Via Shares: 2,694,895 shares priced at $5.6575 every.
- Laborious-Greenback Shares: 1,645,000 shares priced at $3.65 every.
This funding can be made by a single purchaser, who already holds 363,918 shares of Li-FT. Upon closing, the purchaser will personal a complete of 4,703,813 shares, equal to a 9.99% stake within the firm.
As a part of this strategic funding, Li-FT and the purchaser will negotiate an investor rights settlement, together with customary phrases.
Use of Funds:
- Proceeds from the hard-dollar shares will assist the event of Li-FT’s Canadian tasks and normal company functions.
- Funds from the flow-through shares can be allotted to Canadian exploration bills, particularly for the corporate’s Northwest Territories tasks. These expenditures qualify as flow-through critical-mineral mining bills beneath Canadian tax legal guidelines, and all such prices can be renounced to subscribers by December 31, 2024.
The transaction is predicted to shut on or earlier than November 12, 2024, topic to sure circumstances. These embrace the completion of agreements with the purchaser and approval from the TSX Enterprise Trade.
Shares issued can have a maintain interval of 4 months and at some point, as per Canadian securities rules. Canaccord Genuity served as a monetary advisor to Li-FT on this strategic funding.
Flagship Mission and Different Strategic Ventures
In September, Li-FT Energy expanded its Cali Mission within the Northwest Territories, quadrupling its land place by including 9,681 hectares. This transfer follows amendments to the Sahtú Land Use Plan, permitting the corporate to safe new claims, together with spodumene pegmatite deposits that reach the prevailing Cali dyke swarm.
The corporate’s 2023 exploration revealed substantial lithium prospects at Cali. Area visits and floor exploration recognized a larger-than-expected dyke system. Out of 163 samples, 124 had lithium grades above 1.0% Li₂O, prompting additional drilling plans.
CEO Francis MacDonald famous that the low-cost acquisition technique enhances the venture’s lithium potential. Furthermore, Li-FT terminated its Shorty West declare settlement with Infinity Stone Ventures Corp.
Li-FT is dedicated to advancing a number of lithium tasks in Canada, together with the YLP and different early-stage websites in Quebec.
Earlier this month, the lithium firm revealed its maiden mineral useful resource estimate (MRE) for the YLP within the Northwest Territories, Canada. This estimate solidifies the YLP as a big spodumene useful resource, rating it among the many prime 10 within the Americas and the third-largest hard-rock lithium deposit in Canada.
The preliminary MRE reveals 50.4 million tonnes with 1.00% lithium oxide (Li₂O), translating to 1.25 million tonnes of lithium carbonate equal (LCE). The estimate covers 8 of the 13 spodumene-bearing dykes on the property. It has the potential for additional useful resource development as drilling continues.
The venture’s strategic location provides infrastructure benefits, together with proximity to highways and railways, enhancing logistics for potential future exports. The corporate plans a Preliminary Financial Evaluation (PEA) by Q2 2025, which is able to assess the venture’s viability. The aim is to ascertain the Yellowknife Lithium Mission as a serious participant within the North American lithium supply.
The latest personal placement is yet one more milestone for Li-FT Energy’s development technique, enhancing its place within the rising lithium market.
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