Loyal Lithium Secures $3.3M in Oversubscribed Placement at 73% Premium
Key Take Away: Loyal Lithium Limited (ASX: LLI) has successfully raised $3.3 million through a heavily oversubscribed flow-through placement at a 73% premium to the company’s 15-day volume-weighted average price (VWAP). The funds raised will be dedicated to exploration work at the highly prospective Trieste Lithium Project in James Bay, Quebec.
The placement utilized the “flow-through shares” provisions under Canadian tax law, allowing Loyal Lithium to place shares at $0.45 per share, with an immediate on-sale via a block trade agreement to predominantly existing major shareholders in Australia and Canada. The strong demand for the placement highlights the substantial interest in the company’s Trieste Lithium Project, which is strategically located along the Trieste Greenstone Belt and connected to multiple spodumene-bearing lithium projects.
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.”
The company plans to use the proceeds from the placement to fund an innovative geophysical survey, an extensive summer field program, and a subsequent targeted drilling campaign at the Trieste Lithium Project. The $3.3 million raised bolsters Loyal Lithium’s existing $5.0 million in funding and enables the collaborative advancement of the Trieste Greenstone Belt into a premier lithium hub.
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Lithium is a critical component in the production of lithium-ion batteries, which are essential for the growing electric vehicle (EV) and renewable energy storage markets. As the world transitions towards a cleaner, more sustainable future, the demand for lithium is expected to soar. Loyal Lithium, with its strategic position in the James Bay region of Quebec, is well-placed to potentially benefit on this growing commodity appeal.
The successful completion of the oversubscribed flow-through placement at a significant premium to market price demonstrates the strong investor confidence in Loyal Lithium’s prospects and the potential of the Trieste Lithium Project. As the company continues to advance its exploration efforts in the highly prospective James Bay region, it is well-positioned to potentially benefit from the growing global demand for lithium and the increasing focus on sustainable energy solutions.
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