Lithium Africa Resources Corporation Declares $6 Million Equity Funding and Determination to List on a Canadian Securities Exchange
Lithium Africa Resources Corp, a resource company, has recently announced a $6M equity financing. The financing will involve a best efforts private placement offering of units, with 3L Capital Inc acting as the lead agent and sole bookrunner for the financing.
Each unit in the offering will consist of a common share, a warrant, and a special warrant. The warrants and special warrants will entitle the holders to certain purchase rights and automatic share issuance, respectively, for specified periods. The precise terms of these entitlements, such as the exercise prices and durations, have not been disclosed.
The Company has granted the agents the option to offer for sale up to an additional 15% in units, and the Company will pay a cash fee of 7.0% of the gross proceeds raised from the Brokered Offering to the Agents. Additionally, the Company will issue Compensation Options to the Agents, equal to 7.0% of the total number of Units issued in the Brokered Offering.
The proceeds of the Offering will be utilised for ongoing exploration and development of the Company's portfolio of assets, evaluation and acquisition of additional prospective projects, preparation for a public listing on a Canadian stock exchange during H2/2025, and ongoing corporate working capital and investor relations costs. However, the Company has not yet revealed specific details about its listing plan on a Canadian exchange, including the financing strategy.
It is worth noting that the Company is not a reporting issuer in any province or territory in Canada, and its securities are not listed on any stock exchange in Canada. Furthermore, the securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The Offering is scheduled to close on or around 31 March 2025. The Company anticipates its largest shareholder, GFL International Co. Ltd, will subscribe for units in the non-brokered private placement concurrently with the financing.
For those interested in learning more about a company's listing plan on a Canadian exchange, typically, such plans include details on the financing strategy, timeline, and use of proceeds. To stay updated on the latest announcements from Lithium Africa Resources Corp, it is recommended to visit their official website or follow their social media channels.
The financing announced by Lithium Africa Resources Corp for its business operations includes investing in units for enhancing its finance, which will be utilized for various activities such as ongoing exploration, potential acquisitions, preparing for a public listing, and managing corporate expenses. However, specific details regarding the Canadian exchange listing plan and the associated financing strategy are yet to be disclosed.
