Arizona Lithium Limited (ASX: AZL, AZLO, AZLOA, OTC: AZLAF) (“Arizona Lithium”, “AZL” or “the Company”), a leader in lithium development projects in North America, is thrilled to announce the successful completion of an oversubscribed placement, raising $16.5 million (before costs). This significant capital injection is earmarked for the advancement of the Prairie Lithium Project, part of the Company's commitment to sustainable lithium development.
Key Highlights of the Placement:
- Arizona Lithium raised A$16.5m (C$14.8m) through a Flow Through Financing Placement, targeting institutional and sophisticated investors.
- The placement was priced at A$0.051 per share, a 30% premium over the closing price on 13 December 2023.
- Funds will be allocated to qualified Canadian Exploration Expenses (CEE), focusing on the Prairie Project.
- The capital will enable drilling in 2024 at various locations within the Dawson Bay and Souris River Formations.
- AZL plans to utilize existing funds to complete these wells in 2024, aiming for production in the first quarter of 2025.
- A Preliminary Feasibility Study (PFS) is expected to be released by the end of 2023.
- Navajo Transitional Energy Company LLC (NTEC) participated in the capital raising, becoming a valued shareholder in AZL.
Further Details on the Placement: The placement received strong support from institutional and professional investors, with the issuance of new shares at an average price of $0.051 each. Additionally, for every two new shares, one free attaching option (AZLO) is provided, enhancing the investment value. These options, exercisable at $0.05 each and expiring on 10 August 2025, will be ASX listed and complement the existing AZLO class.
Advancing the Prairie Lithium Project: The proceeds from this placement will significantly strengthen Arizona Lithium's balance sheet, enabling the Company to intensify its efforts on the Prairie Project. The focus will be on exploration activities in the Dawson Bay and Souris River Formations, with an aim to transition smoothly into production in the first half of 2025.
AZL Managing Director, Paul Lloyd, commented: “We are extremely pleased to have successfully completed the Placement to raise $16.5m to fund further work on the Prairie Project. It is testament to the strategic planning of the management team, and the Canadian government incentives, that we were able to have an oversubscribed placement at a 30% premium to our last closing price. We are excited to continue delivering positive updates to shareholders, including the release of the pre-feasibility study at the Prairie Project, which we believe will add significant value to the Company. We look forward to an exciting 2024, with funding in place to drill exploration wells, complete existing wells and move towards production in the first half of 2025.
The Directors would like to welcome Navajo Transitional Energy Company LLC (NTEC) to the register after they purchased 13,000,000 shares in this placement. NTEC and AZL have formed a strategic alliance to develop the Big Sandy Lithium project in Arizona. We look forward to advancing Big Sandy with NTEC as a partner and shareholder.”