Foremost Lithium prices US$4.0 million offering, trades on Nasdaq
Foremost Lithium Resources & Technology Ltd. [FAT-CSE, FRRSF-OTCQB, FORO-FSE, A3DCC8-WKN] has announced the pricing of a US$4.0 million offering that will be used to fund exploration on projects in Manitoba and Quebec.
The company also said its common shares and common warrants were expected to begin trading on the Nasdaq Capital Market today (August 22, 2023), under the symbols FMST and FMSTW, respectively.
Foremost is a hard-rock exploration company with a focus on its five “Lithium Lane Projects” in Snow Lake, Man., which over 43,000 acres. It also holds a property in an active lithium camp in Quebec called Lac Simard South, covering 1,400 acres.
The company has said it is aiming to capitalize on the world’s growing electric vehicle appetite and to become a premier supplier of lithium feedstock.
In keeping with that goal, the company recently completed a 24-hole, 3,200-metre drill program on its Jean Lake lithium project near Snow Lake. The company said it collected 246 drill core samples and 10 outcrop chip samples during the program.
It said all samples have been shipped to Activation Laboratories Ltd. (Ancaster, Ont.) for assaying. Results are expected within this second quarter (2023).
The company said the underwritten offering consists of 800,000 units, each consisting of one common share and one warrant to purchase one share. Each common share unit is priced at US$5 per unit. The warrants within each common share unit will have a per share exercise price of US$6.25, be exercisable immediately and expire five years after the date of issuance.
The company said the common shares and common warrants that are part of the common share units can only be purchased together in the offering but will be issued separately. In addition, the company has granted the underwriter a 45-day option to purchase an additional 120,000 common share units and/or prefinanced units to cover overallotments, if any.
Each prefinanced warrant unit would consist of one prefinanced warrant to purchase one common share and one common warrant, and would be issued at a US$4.99. Each prefinanced warrant would be exercisable to acquire a common share for an indefinite term at an exercise price of US$0.01.
The offering is expected to close on August 24, 2023.
In a June 28, 2023, press release, Foremost announced that it had engaged Dahrouge Geological Consulting Ltd to undertake all further exploration and drill programs on its Lithium Lane properties as well as its most recent acquisition, the Lac Simard South project in Quebec.
The company said Dahrouge Geological has a proven track record of lithium discovery, with a related company being the original vendor of Patriot Battery Metals Inc.’s [PMET-TSXV, PMETF-OTCQB, R9GA-FSE] Corvette property in Quebec.
Foremost shares were recently priced at $8.33 on the CSE and trade in a range of $5.75 and $17.00. There are currently about 4.0 million basic shares outstanding on the CSE.