Arizona Lithium has received commitments to raise $16.5m through a strongly supported share placement to institutional and professional investors. Pic via Getty Images
Mining
Special Report: Arizona Lithium has raised $16.5m via a placement to institutional and sophisticated investors at a 30% premium to its closing price on 13 December.
Arizona Lithium (ASX:AZL) will use the funds to fast-track 2024 drilling at its Prairie lithium project in Canada.
The placement – completed at 5.1 cents per share – was undertaken through a Flow Through Financing Placement with proceeds applied to qualified Canadian Exploration Expenses (CEE) to institutional and sophisticated investors.
Proceeds allow AZL to continue work on Prairie, specifically with exploration in the Dawson Bay and Souris River Formations.
Following this, the company will use its existing funds to complete the wells in preparation to move into production in the first half of 2025.
All activities will be outlined in the PFS which is expected to be released by the end of 2023.
“We are extremely pleased to have successfully completed the placement to raise $16.5m,” AZL managing director Paul Lloyd says.
“It is testament to the strategic planning of the management team, and the Canadian government incentives, that we were able to have an oversubscribed placement at a 30% premium to our last closing price.
“We are excited to continue delivering positive updates to shareholders, including the release of the PFS at the Prairie project, which we believe will add significant value to the company.”
AZL has also welcomed Navajo Transitional Energy Company LLC (NTEC) to its register after the group purchased 13 million shares in this placement.
“NTEC and AZL have formed a strategic alliance to develop the Big Sandy lithium project in Arizona,” Lloyd says.
“We look forward to an exciting 2024, with funding in place to drill exploration wells, complete existing wells and move towards production in the first half of 2025.”
This article was developed in collaboration with Arizona Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
