GT1 bags an extra $14.6m for exploration at the Root Bay and Junior lithium projects in Canada
Special Report: Downstream lithium aspirant Green Technology Metals has raised $14.6m to progress exploration at its Root Bay and Junior lithium projects in Ontario, Canada.
Via a staged strategy, Green Technology Metals (ASX:GT1) is looking to become Ontario’s first battery-grade lithium producer from a current resource of 24.9Mt at 1.13% Li2O across its Seymour and Root Bay projects.
It recently conducted a Preliminary Economic Assessment (PEA) with two options for development.
Option 1 includes mine and concentrator development (Seymour and Root) producing saleable 5.5% spodumene concentrates, while Option 2 covers the broader integrated project by adding the construction of a converter facility to produce lithium hydroxide and other spodumene concentrates.
GT1 has received firm commitments to raise ~C$13m (AUD$14.65m) by issuing 39,477,680 fully paid ordinary shares at 37c per share at a 32% premium to the last trading price and a 48% premium to the offering share price of 25c under a block trade agreement.
These are offered as Canadian “flow-through shares” which provide tax incentives to investor purchases, qualified as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).
There will be an immediate on-sale of flow-through shares via a block trade agreement between PearTree and the lead manager to secure new and strategic sophisticated investors.
Existing investor ACMI Group has increased its shareholding to ~11.5%.
“This financing round strategically leverages the least dilutionary mechanism for shareholders by optimising the benefits of the Canadian flow-through benefits regime,” GT1 executive director Cameron Henry says.
“GT1 has allocated a considerable spend budget for exploration and feasibility works through 2024 and this funding ensures the seamless progression of our planned exploration activities.
“Our development map for 2024, particularly for the Seymour project, is well-defined as we move closer to a financial investment decision.
“We are looking forward to the commencement of site activities in the first quarter of 2024 whilst we continue to build up our resource base across both hubs and use the new funds for the maiden drilling program planned at the Junior lithium project and further definition drilling planned for Root.”
This article was developed in collaboration with Green Technology Metals, 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.