Burley rattles the tin for $4.5m to splash on Canadian lithium assets

A swift cap raise means Burley Minerals can now start adding more holes to the Phase 1 and 2 drilling campaigns at its Tier 1 Chubb Lithium project in Quebec Province, Canada.

After maiden drilling at Chubb Lithium confirmed the presence of spodumene-bearing pegmatites earlier this month, Burley Minerals (ASX:BUR) has rattled the tin for $4.5 million to accelerate further exploration work at its Canadian assets.

A$3.3m will be raised through a ‘flow-through’ share provision at 43.6c per share, a 78% premium to last Friday’s closing price of 24.5c, with Canaccord Genuity and PearTree Securities managing the transaction.

“The ‘flow-through share’ provisions under Canadian tax law means we are able to raise capital at a significant premium to the current share price which in turn minimises dilution to existing shareholders significantly,” Burley MD Wayne Richards said.

The remaining A$1.2m will be raised through firm commitments from sophisticated and institutional investors at 21c per share – a 14% discount to the previous close.

Buying up Bouvier

As well as splashing the cash for Chubb Lithium the explorer will allocate funds to complete the acquisition of the Bouvier lithium asset; both of which are in near proximity to Canada’s only active spodumene concentrator run by Sayona Mining (ASX:SYA) and Piedmont Lithium (ASX:PLL).

Richards said he was excited to receive commitments to the capital raise, and to see such a high level of interest at a time of improving lithium prices and demand.

“The additional funding will allow Burley to accelerate drilling at its Canadian Tier 1 lithium projects in the province of Quebec, Canada in close proximity to Canada’s only operating spodumene mine and concentrator,” he said.

“The funding will allow the company to further ramp up exploration and resource drilling and resource targeting activities at the Chubb Lithium project.”

“Our geologists are currently on the ground at Chubb, planning additional holes to significantly extend our 5,000m Phase 1 drilling campaign announced last month.”

Burley said it was also looking forward to initiating planned targeting work at its Gascoyne projects in WA that run along the same corridor as the now famous Yinnetharra lithium precinct.

This article was developed in collaboration with Burley Minerals, a Stockhead advertiser at the time of publishing.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.