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Finance Investment, Oil Mining Resources

Loyal Lithium (ASX:LLI) Raises $3.3M at a 73% Premium to Market in Heavily Oversubscribed Flow-Through Placement

Loyal Lithium Limited (ASX:LLI) 2 mins read

Highlights:

  • Loyal Lithium has raised $3.3M at a 73% Premium to the 15-day VWAP by utilising the “flowthrough shares” provisions under Canadian tax law.
  • Flow-through shares to be placed at $0.45 per share with an immediate on-sale via a block trade agreement to predominately existing major shareholders in Australia and Canada.
  • Placement received exceptionally strong demand with funds raised dedicated to exploration works at the highly prospective Trieste Lithium Project, James Bay Quebec.
  • The $3.3M raised bolsters Loyal Lithium’s existing $5.0M(1) in funding and enables the collaborative advancement of the Trieste Greenstone Belt into a premier lithium hub.
  • The Trieste Lithium Project is strategically located along the Trieste Greenstone Belt and connected to multiple spodumene bearing lithium projects, including Rio Tinto/Midland Exploration, Azimut Exploration/SEQUEM and Winsome Resources’ (ASX:WR1) AdinaJamar project with a JORC Inferred Mineral Resource Estimate of 59 Mt at 1.12% Li2O(2) .

Loyal Lithium Limited (ASX:LLI) (Loyal Lithium, LLI, or the Company) is pleased to announce that it has received firm commitments to raise $3.3M through the issue of 7,345,744 new fully-paid ordinary shares in the Company (Flow-Through Placement) at an issue price of ~$0.45 per share representing a 73% premium to LLI’s 15 Day VWAP price of ~$0.26 and a 95% premium to the offering share price of $0.23 under the block trade agreement referred to below. The Flow Through Placement has utilised the “flow-through shares” provisions under Canadian tax law. Canaccord Genuity (Australia) Limited acted as the sole lead manager (Lead Manager).

The Placement received overwhelming support from the market with significant scaling required and priority given to major existing shareholders in Australia and Canada. The response underscores the substantial interest in Loyal Lithium's Trieste Lithium Project which is strategically located along the Trieste Greenstone Belt and connected to multiple spodumene bearing lithium projects, including Rio Tinto/Midland Exploration, Azimut Exploration/SEQUEM and Winsome Resources’ (ASX:WR1) Adina-Jamar project with a JORC Inferred Mineral Resource Estimate of 59 Mt at 1.12% Li2O(2).

Loyal Lithium’s Managing Director, Mr. Adam Ritchie, commented:

"The demand for the placement and ongoing support from our shareholders has been overwhelming. The vast majority of our major shareholders participated in this placement including Jody Dahrouge, principle of our in-country geological partner, Dahrouge Geological Consulting. Their support is a reflection of the potential of the project and the solid foundation that our team has built in Canada."

“The “flow-through shares” provisions under Canadian tax law reduces shareholder dilution but more importantly ensures valuable exploration and development work can be accelerated.”

“The opportunity and potential of this northeastern region of James Bay is growing every week as world class exploration results continue to be published by Patriot Battery Metals, Winsome Resources, Azimut Exploration, Brunswick Exploration and Rio Tinto/Midland Exploration. In fact, four of the top five lithium drill intercepts published by Miner Decks for the month of April 2024 came from this northeastern region of James Bay, demonstrating the growing prominence and potential scale of the region. It’s a pleasure to make the list and be published alongside such companies."


About us:

Loyal Lithium Limited (ASX: LLI) is a well-structured listed resource exploration company with projects in Tier 1 North American mining jurisdictions in the Northwest Territories, Canada, James Bay Lithium District in Quebec, Canada and Nevada, USA. Through the systematic exploration of its projects, the Company aims to delineate JORC compliant resources, creating value for its shareholders.


Contact details:

Jane Morgsn

jm@janemorganmanagement.com.au

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