Green Technology Metals Ltd (ASX:GT1, OTC:GTMLF) has raised A$14.6 million with the funds to underpin continued exploration activities at the company’s Root Bay deposit and maiden drilling program at its Junior Lithium Project as it builds a vertically integrated lithium business in Ontario, Canada.
The funds have been raised via 'flow-through' shares provisions under Canadian tax law, which provide tax incentives to investors for expenditures that qualify as flow-through critical mineral mining expenditures.
Flow-through shares are to be placed at $0.37 per share — a 32% premium to GT1’s last trading price prior to the announcement of the raise.
The immediate on-sale of flow-through shares via a block trade agreement has secured new and strategic institutional and sophisticated investors. The raise generated significant interest from existing investors including AMCI Group, which has increased its shareholding to around 11.5%.
The $14.6 million C$13 million) was raised through the issue of 39,477,680 new fully-paid ordinary shares, at A$0.37 per share, representing a 32% premium to GT1’s last trading price of A$0.28 (as of December 5, 2023) and a 48% premium to the offering share price of A$0.25 under the block trade agreement.
Another transformative year anticipated
“This financing round strategically leverages the least dilutionary mechanism for shareholders by optimising the benefits of the Canadian flow through benefits regime. GT1 has allocated a considerable spend budget for exploration and feasibility works through 2024 and this funding ensures the seamless progression of our planned exploration activities,” said Green Technologies Metals executive director Cameron Henry.
“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.
"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 across 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.”