Green Technology Metals (ASX:GT1) to raise $14.5m at 32pc premium
December 11, 2023A charged up Green Technology Metals will raise $14.6 million (C$13m) for lithium exploration in Ontario while minimising shareholder dilution.
The $C13 million cap-raise was led by sole lead manager and flow-through bookrunner Canaccord Genuity Australia. It was co-managed through Bell Potter Securities and Fosters Stockbroking.
Green Technology Metals Executive Director Cameron Henry said the funding would ensure seamless progression of the company’s planned exploration activities.
“This financing round strategically leverages the least dilutionary mechanism for shareholders by optimising the benefits of the Canadian flow-through benefits regime,” Henry said.
“We are eagerly anticipating another transformative year for GT1 in 2024 on our path to become Ontario’s first lithium producer.
“Our development map for 2024, particularly for the Seymour project, is well-defined as we move closer to a financial investment decision.”
The flow-through shares will be placed at 37 cents a share at a 32% premium to the company’s 28c last trading price last Wednesday, December 6.
Green Technology Metals offer is a 48% premium to a 25c block trade agreement.
Henry said the company would get on the ground in the March quarter to build up its resource base at its Eastern and Western hubs.
It hopes to bring Eastern hub online first with Seymour project in 2025, where it will house a spodumene concentrator to supply offtake clients such as LG Energy Solution.
Eastern hub also houses North Seymour, Junior Lake and Falcon projects, near the outlying Superb Lake project.
Seymour currently has an estimated resource of 9.9 million tonnes grading 1.04% lithium, with 5.2Mt in the indicated category grading 1.29% Li2O.
“We are looking forward to the commencement of site activities in the first quarter of 2024 whilst we continue to build up our resource base at both hubs and use the new funds for the maiden drilling program planned at the Junior lithium project and further definition drilling planned for Root,” Henry said.
Western hub houses Root Bay, McCombe and Morrison projects.
Root has an inferred mineral resource estimate of 12.6 million tonnes at 1.21% Li2O while McCombe has a maiden resource of 4.5Mt at 1.01 % Li2O.
Last month Green Technology Metals Chief Executive Officer Luke Cox told MarketOpen sister magazine The Pick that the company was on track for first production in Ontario within two years.
Download the December 2023 quarter issue of The Pick.
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