Critical Resources Ltd (ASX:CRR) is raising A$6.7 million at a significant premium thanks to a flow-through share provision under Canadian tax law.
The flow-through shares — which will immediately be sold on to institutional and sophisticated investors under a block trade agreement — will be placed at A$0.08 per share, a 45% premium to CRR’s last close price.
Interestingly, applications for the block trade book build were scaled back, demonstrating increasing interest in the company’s Ontario-based lithium projects.
Critical is readying to release its maiden mineral resource early next year and plans to drill out around 20,000 metres across its cornerstone Mavis Lake Lithium Project in 2023.
As such, the company will use the funding runway to continue the drilling program, where more than 42 spodumene-bearing pegmatite assays are pending.
Accelerating program
Managing director Alex Cheeseman said the raise would fully fund the company’s Canadian drilling plans in 2023.
“We are focusing our efforts on advancing the Mavis Lake project, where we have seen exceptional results since the maiden drilling program began in April this year,” he explained.
“With the maiden JORC 2012-compliant resource expected in quarter one of 2023, and with the company now fully funded for the 2023 Mavis Lake drilling program, we can confidently accelerate our program by introducing more drill rigs and advancing our studies in parallel."
Specifically, funds raised will support:
- continued drilling at and around the main zone of Mavis Lake; and
- survey, fieldwork and follow-up drilling of mapped, spodumene-bearing pegmatites within the Mavis Lake project area.