Li-FT Power Ltd. (TSXV: LIFT) has announced a strategic, non-brokered private placement to raise around $21.25 million. The mineral exploration company focuses on the acquisition, exploration, and development of lithium pegmatite projects in Canada.
Li-FT Power’s flagship project is the Yellowknife Lithium Project (YLP) in the Northwest Territories. Moreover, the company holds 3 early-stage exploration properties in Quebec, and the Cali Project in the Northwest Territories, which is part of the Little Nahanni pegmatite group.
Strategic Investment: A Boost for Canadian Lithium Projects
The lithium company’s newly announced private placement includes:
- Flow-Through Shares: 2,694,895 shares priced at $5.6575 each.
- Hard-Dollar Shares: 1,645,000 shares priced at $3.65 each.
This investment will be made by a single purchaser, who already holds 363,918 shares of Li-FT. Upon closing, the purchaser will own a total of 4,703,813 shares, equivalent to a 9.99% stake in the company.
As part of this strategic investment, Li-FT and the purchaser will negotiate an investor rights agreement, including customary terms.
Use of Funds:
- Proceeds from the hard-dollar shares will support the development of Li-FT’s Canadian projects and general corporate purposes.
- Funds from the flow-through shares will be allocated to Canadian exploration expenses, specifically for the company’s Northwest Territories projects. These expenditures qualify as flow-through critical-mineral mining expenses under Canadian tax laws, and all such costs will be renounced to subscribers by December 31, 2024.
The transaction is expected to close on or before November 12, 2024, subject to certain conditions. These include the completion of agreements with the purchaser and approval from the TSX Venture Exchange.
Shares issued will have a hold period of four months and one day, as per Canadian securities regulations. Canaccord Genuity served as a financial advisor to Li-FT in this strategic investment.
Flagship Project and Other Strategic Ventures
In September, Li-FT Power expanded its Cali Project in the Northwest Territories, quadrupling its land position by adding 9,681 hectares. This move follows amendments to the Sahtú Land Use Plan, allowing the company to secure new claims, including spodumene pegmatite deposits that extend the existing Cali dyke swarm.
The company’s 2023 exploration revealed substantial lithium prospects at Cali. Field visits and surface exploration identified a larger-than-expected dyke system. Out of 163 samples, 124 had lithium grades above 1.0% Li₂O, prompting further drilling plans.
CEO Francis MacDonald noted that the low-cost acquisition strategy enhances the project’s lithium potential. Moreover, Li-FT terminated its Shorty West claim agreement with Infinity Stone Ventures Corp.
Li-FT is committed to advancing multiple lithium projects in Canada, including the YLP and other early-stage sites in Quebec.
Earlier this month, the lithium company revealed its maiden mineral resource estimate (MRE) for the YLP in the Northwest Territories, Canada. This estimate solidifies the YLP as a significant spodumene resource, ranking it among the top 10 in the Americas and the third-largest hard-rock lithium deposit in Canada.
The initial MRE reveals 50.4 million tonnes with 1.00% lithium oxide (Li₂O), translating to 1.25 million tonnes of lithium carbonate equivalent (LCE). The estimate covers 8 of the 13 spodumene-bearing dykes on the property. It has the potential for further resource growth as drilling continues.
The project’s strategic location offers infrastructure advantages, including proximity to highways and railways, enhancing logistics for potential future exports. The company plans a Preliminary Economic Assessment (PEA) by Q2 2025, which will assess the project’s viability. The goal is to establish the Yellowknife Lithium Project as a major player in the North American lithium supply.
The recent private placement is yet another milestone for Li-FT Power’s growth strategy, enhancing its position in the growing lithium market.
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