PERTH (miningweekly.com) – ASX-listed Critical Resources will raise A$10.2-million to fund exploration work at its Mavis Lake lithium project in Ontario.
The company on Thursday said that an initial A$7.9-million will be raised using the flow-through shares provision under Canadian tax law, with the shares to be placed at a price of 6.09c each, representing a 14.9% premium to the company’s last closing price.
The flow-through share funds would finance a solid 18-month drilling campaign at Mavis Lake, Critical Minerals told shareholders.
“Following the release of the maiden resource early this year, and with continued, exceptional exploration results offering significant growth potential, we are at a pivotal moment for the company and the Mavis Lake lithium project,” said Critical Resources MD Alex Cheeseman.
“We have attracted high-caliber institutional investors and have been well supported by a core base of existing holders. The funds from the raise will be immediately put to work, enabling the company to continue drilling in order to deliver resource growth.”
Meanwhile, the company is hoping to raise a further A$2.3-million through a placement to select institutional and sophisticated investors, with the shares priced at 4.5c a share. The funds raised from the institutional placement will be used for corporate and administrative costs.