LithiumBank raising $5.0 million for deep brine projects
LithiumBank Resources Corp. [LBNK-TSXV, LBNKF-OTCQX, HT9-FSE] has announced a $5 million private placement financing and a repricing of stock options.
It intends to raise that amount from the sale of a minimum of 5.7 million units up to a maximum of 8.57 million units priced at 35 cents per unit for gross proceeds of $3.0 million. It wants to raise another $2.0 million from the sale of up to 5.0 million flow-through units that qualify as “flow-through shares” within the meaning of the Income Tax Act (Canada) at a price of 40 cents per FT unit.
Each unit will consist of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one share for 36 months after the issue date at an exercise price of 50 cents.
Each FT Unit will consist of one common share and one half of one common share purchase warrant, each of which will entitle the holder to buy one share for 36 months from the issue date at a price of 60 cents.
The company said it will use the net proceeds of the offering for brine hosted mineral license payments, environmental assessment studies and community consultation. It said an amount equal to the gross proceeds from the issuance of the flow-through shares, partially comprising the flow-through units will be used to incur Canadian exploration expenses that qualify as flow-through mining expenditures under the Income Tax Act, including drilling related expenses, reservoir data analysis and metallurgy.
Subject to the approval of the TSX Venture Exchange, the company also said its board of directors have approved the repricing of the exercise price of 6.06 million outstanding stock options from between 80 cents and $1.29 per common share to 40 cents per share.
LithiumBank shares were unchanged Wednesday at 40 cents. The shares trade in a 52-week range of 96 cents and 25 cents.
LithiumBank is a company that is focused on developing a large portfolio of deep brine lithium projects in western Canada.
The company’s overall goal is to capitalize on the expected rise in demand for lithium – a key ingredient in the production of lithium-ion batteries – by providing de-risked, construction-ready direct lithium brine projects to major developers.
LithiumBank recently outlined the largest lithium carbonate equivalent (LCE) inferred mineral resource in North America at its 100%-owned Park Place lithium brine project in west central Alberta. In addition to a very large resource, Park Place boasts the highest recorded lithium grade in Alberta.
In a June 24, 2024, press release the company said the total inferred mineral resource at Park Place stands at 21.6 million tonnes LCE, material that sits between two formations contained within the license boundaries. The combined average grade is 8.2 mg/L lithium.
The Park Place resource puts LithiumBank’s collective brine resource inventory for the company’s Alberta projects at 27.78 million tonnes LCE.