Alpha Lithium Corp. [ALLI-TSXV; ALLIF-OTC; 2P61-FSE] said Friday February 19 that it has raised $23 million from a previously announced short form prospectus offering of units that were sold on a bought deal basis to Echelon Wealth Partners Inc. and Leede Jones Gable Inc.
The company said net proceeds of the offering will be used to fund the pursuit of strategic acquisitions and mineral exploration expenses at the company’s Tolillar Lithium Project in Argentina.
Alpha shares were unchanged at 86 cents on volume of 557,270 and trade in a 52-week range of $1.45 and 27 cents.
“The completion of the offering has strengthened our balance sheet, and now with a solid cash position of more than $35 million, Alpha can extend the scope of its drilling program and accelerate some of the exceptional work being undertaken with Direct Lithium Extraction (DLE) partners and technology providers,” said Alpha Lithium President and CEO Brad Nichol.
“In addition to developing the Tolillar Salar in Argentina, the company will be in a very strong position to consider opportunistic acquisitions, partnerships and enter Direct Lithium Extraction (DLE) negotiations with various parties,” he said.
Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for 24 months from the date of closing at an exercise price of $1.10. A total of 28.4 million units were issued at $0.81 per unit. That includes the exercise of over-allotment options.
The underwriters received a cash commission of 7% of the gross proceeds as well as underwriters warrants that allow them to purchase up to 1.9 million common shares of the company at $0.81 for two years after the date of closing.
Alpha Lithium says it has assembled 100%-ownership of what may be one of Argentina’s last undeveloped salars, one that encompasses 27,500 hectares located in the vicinity of some key players in the “Lithium Triangle.”
Alpha Lithium recently said it is drilling of phase two of its three-phase drilling program at Tolillar Salar. The current drill program is an additional step towards the completion of a NI 43-101-compliant resource estimate.
Alpha said it recently added a renowned group of lithium chemistry experts to its team for the purpose of examining and evaluating different DLE techniques that have shown to economically extract lithium at concentrations lower than 100 mg/L.