Critical Resources, an ASX-listed company engaged in lithium production in Canada, will raise A$10.2-million to fund exploration work at its Mavis Lake lithium project in Ontario, Mining Weekly reported.
An initial A$7.9-million will be raised using the flow-through shares provision under Canadian tax law. The flow-through share funds would finance a solid 18-month drilling campaign at Mavis Lake.
The company plans to acquire further A$2.3-million through a placement to select institutional and sophisticated investors. The funds raised from the institutional placement will be used for corporate and administrative costs, Critical Minerals told its shareholders in a statement.
“Following the release of the maiden resource early this year, and with continued, exceptional exploration results offering significant growth potential, we are at a pivotal moment for the company and the Mavis Lake lithium project,” said Critical Resources managing director Alex Cheeseman.
“We have attracted high-caliber institutional investors and have been well supported by a core base of existing holders. The funds from the raise will be immediately put to work, enabling the company to continue drilling in order to deliver resource growth.”
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
