Olympio Metals Ltd (ASX:OLY, OTC:COPGF) has received firm commitments to raise around A$1.1 million (C$1 million) as it looks to ramp up exploration at the Cadillac Lithium Project in Quebec in the coming months.
The funding was raised via a flow-through shares (FTS) placement under Canada’s Income Tax Act, where tax incentives are provided to eligible investors for Olympio expenditures that qualify as flow-through critical mineral mining expenditures.
Importantly, the use of the flow-through provisions enabled Olympio to minimise issued capital dilution.
Exploration funding
Now with a strengthened balance sheet, Olympio is in a position to accelerate exploration at the Cadillac Lithium Project.
Olympio managing director Sean Delaney said: “This placement secures funding for exploration at a premium to our share price and reduces shareholder dilution utilising the benefits of the Canadian flow through regime.
“Olympio has just completed its first diamond drilling program at the Cadillac Lithium Project in Quebec and intends to ramp up exploration over the coming months to unlock the potential of its 190 square kilometre land package just 50 kilometres from the mining town of Val d’Or.”
The FTS placement
The raise saw Olympio issue around 6.7 million fully paid ordinary shares at C$0.15 (A$0.17) per share. This represents an 88% premium to Olympio’s closing price of A$0.09 per share on March 4, 2024, and a 100% premium to the secondary sale price of the FTS shares.
The FTS placement was facilitated by Canadian flow-through share dealer, Oberon Capital in line with a block trade agreement between Oberon and the lead manager, Canaccord Genuity (TSX:CF, LSE:CF). Canaccord will facilitate the secondary sale of the new shares acquired by Oberon clients under the FTS placement to sophisticated and professional investors by way of a block trade at A$0.085 per new share.