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- Recapitalisation transaction to provide adequate funding to complete DFS for Seymour lithium project
- Transaction designed to take advantage of a compelling lithium market recovery
- Project optimisation work on Seymour is expected to deliver meaningful capex savings and improved project economics.
Green Technology Metals (ASX: GT1) has successfully raised $11 million to recapitalise the company and provides adequate funding to take the Seymour lithium project in Canada through the completion of its definitive feasibility study (DFS).
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MD, Cameron Henry, said the capital raising marks a defining moment for Green Technology Metals.
“After navigating a challenging period in the global lithium market, we are now in a position to reinvigorate the company with the financial resources needed to complete our DFS and advance Seymour towards a final investment decision,” he said.
“The Seymour project remains a quality, strategically located hard rock lithium asset in Ontario – a jurisdiction that continues to attract significant government support and private capital as North America builds out a domestic critical minerals supply chain.
“We have maintained the project in excellent standing throughout the lithium downcycle and we are now well positioned to move with conviction as market conditions improve.
“The funds raised will allow us to implement and execute on a clear and disciplined work program that delivers the Seymour DFS, permitting and financing milestones required to reach FID.
GT1 has received firm commitments from new and existing institutional and sophisticated investors to raise $7 million.
The placement will be completed in two tranches:
Tranche one will raise approximately $1,600,000 through the issue of 80,000,000 new shares, utilising the company’s available placement capacity.
Tranche two will raise approximately $5,400,000 through the issue of 270,000,000 new shares, which includes a total of 8,520,440 new shares subscribed for by directors John Young and Patrick Murphy.
In addition to the placement, GT1 is undertaking a fully underwritten entitlement offer to raise a further $4 million where eligible shareholders will have the right to subscribe for four new shares for every 13 fully paid ordinary shares held in the company.
Seymour is one of the most advanced lithium development projects in Ontario. All mining leases for the construction area are secured, the DFS is well advanced, permitting and approvals are in advanced stages, a C$100 million conditional letter of interest has been received from Export Development Canada, the majority of major project expenditure has been completed, and strategic partnerships are in place.
The project is positioned to become Ontario’s first lithium mine with an opportunity to be Canada’s next lithium project into development.
GT1 is down 20.0% to 2.4c. Mkt cap $19.52M.
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