PERTH (miningweekly.com) – Canada-focused Green Technology Metals is hoping to raise A$55-million in a share placement to fund an aggressive exploration strategy at its tenement holdings in Ontario.
The ASX-listed lithium hopeful on Thursday said that it has received firm commitments for the placement of 52.4-million shares, in two tranches, at an issue price of A$1.05 a share.
An initial 20.23-million shares will be placed under Green Technology’s existing placement capacity, raising A$31.7-million, while a second tranche, consisting of 22.1-million shares to raise an additional A$23.3-milion, will be subject to shareholder approval at a meeting scheduled for June.
The placement price of A$1.05 a share represented a 9.1% discount to Green Technology’s last closing price on the ASX, and a 5.6% discount to the company’s five-day volume weighted average share price.
The share placement will include a $10-million strategic investment by TSX- and NYSE-listed Lithium Americas Corporation, which is constructing the Cauchari-Olaroz lithium brine project, in Argentina.
In addition to the cornerstone investment, Lithium Americas Corporation has also entered into a non-binding collaboration framework agreement with Green Technology to advance the evaluation of a strategically located, integrated lithium chemicals business in North America.
The framework would allow for the evaluation of potential cooperative aspects between the two companies in relation to all aspects of the lithium processing and production value chain, Green Technology told shareholders, from the processing of spodumene to the production of battery-grade lithium chemicals.
Meanwhile, funds raised in the share placement will be used to fund exploration and the evaluation of new business opportunities, Green Technology said.