- BM8 to raise $5.4m via flow through shares and $1.m via an institutional placement
- The funds will accelerate successful lithium exploration at Falcon Lake
- Maiden drilling returned 27.6m at 1.37% Li2O and 21.92m at 1.44% Li2O
- Falcon Lake is strategically located in Ontario near several ASX players
Battery Age Minerals has received firm commitments to raise approximately A$6.4m to fund its aggressive ~15,000m drilling campaign at the Falcon Lake lithium project in Canada.
The company will raise A$5.4M (C$4.7M) utilising the ‘flow-through shares’ provisions under Canadian tax law, which will enable BM8 to minimise issued capital dilution.
The flow-through shares will be placed at A$0.46 per share, which represents an 11% premium to the last closing price.
In addition, significant interest was received in the capital raising from new and existing institutional and sophisticated participants, allowing the company to accept an additional A$1m through an institutional placement at A$0.34 per share.
“We are very pleased with the strong investment interest received from new and existing institutional and high-net worth investors,” Battery Age Minerals (AX:BM8) MD Gerard O’Donovan said.
“The proceeds of this strongly supported raising will allow us to maintain the early exploration momentum we have built up at Falcon Lake and build quickly on the encouraging results we have delivered from our maiden drill programme to unlock the potential of the asset.”
Extensive pipeline of drill targets
Last week the company doubled the mineralised corridor at Falcon Lake to 5km, identifying nine new pegmatite outcrops – including five containing visible spodumene ranging from 5% to 20% content –over the previously unexplored 2.5km eastern section of the project.
And there may be more where that came from, with an extensive pipeline of drill targets yet to be tested at the project.
“Coupled with drilling completed to date, we are very excited about the additional targets we have discovered recently through the summer fieldwork program,” O’Donovan said.
“This has confirmed the presence of mineralisation across a 5km prospective corridor at Falcon Main, and we now have an extensive pipeline of drill targets to test.
“We will also commence our maiden field exploration campaign at the recently acquired Jesse Lake Project to determine the prospectivity of this project.
“We have now put ourselves in a strong position to continue drilling through the winter months at Falcon Lake, and to rapidly advance exploration across our Canadian lithium portfolio.”
Exploration in Canada heating up
The company’s early success to date comes as exploration activity in Canada heats up.
Whilst a large part of this is centred around the James Bay region in Quebec, Ontario has also garnered quite a fair bit of attention.
Battery Age has a 90% stake in Falcon Lake, which covers 42.8km2 of ground and is close to several other lithium explorers and developers.
And not too far away, fellow ASX-lister Critical Resources (ASX:CRR) is also exploring in Ontario, proving up an 8Mt andf growing resource at 1% lithium oxide over at the Mavis Lake project.
Patriot Lithium (ASX:PAT) has also identified lithium in several pegmatites within its Gorman project in Ontario.
Further ~15,000m drilling planned
The funding will allow for a further ~15,000m of drilling and field exploration programs at Falcon Lake.
The focus is on step-out drilling to building on the company’s recent outstanding assays results from its maiden drilling program to date, which included 27.6m at 1.37% Li2O from 16.65m down-hole and 21.92m at 1.44% Li2O from 5.7m down-hole.
Field exploration is also planned at the recently acquired Jesse Lake lithium project, which holds potential for Lithium-Caesium-Tantalum (LCT) pegmatites and is host to extensive metasedimentary units of the Quetico Subprovince, the same bedrock that host the nearby Georgia Lake and Forgan Lake LCT pegmatites.
The company aims to leverage this prospective ground to expand its land holding in Ontario and diversify its presence in a region known for its proven mineral resources, including Rock Tech Lithium Gorgia Lake project, which has a NI43-101 reported a mineral resource of 10.Mt at 0.88% Li2O (Indicated) and 4.2Mt at 1% Li2O (Inferred).
This article was developed in collaboration with Battery Age Minerals, 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.