Green Technology Metals (ASX:GT1) has received firm commitments to raise $14.6 million (C$13 million) and has utilised the ‘flow-through shares’ provisions under Canadian tax law.
The funding has utilised Canada’s flow-through shares provisions at an issue price of A$0.37 per share representing a 32% premium to Green Technology’s last trading price of A$0.28 (as of 5 December 2023) and a 48% premium to the offer share price of A$0.25 under the block trade agreement referred to below.
Canaccord Genuity (Australia) acted as sole lead manager and bookrunner to the flow-through. Fosters Stockbroking and Bell Potter Securities each acted as co-managers.
The offer for flow-through shares has been facilitated by Canadian share dealer PearTree Securities under a subscription and renunciation agreement and a block trade agreement being facilitated by Canaccord.
The capital raised will be used to underpin continued exploration activities at the Root Bay prospect and a maiden drilling program at the Junior Lithium Project in Canada.
Green Technology says 39.5 million fully paid ordinary shares will be issued as part of the flow-through, which has garnered ‘significant’ interest from existing investors, including AMCI Group, which has increased its shareholding to 11.5%.
The company notes the use of a flow-through provides tax incentives to investors for expenditures that qualify as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).
The use of flow-through provisions has enabled the company to minimise issued capital dilution.
Green Technology Metals Executive Director Cameron Henry says the funding ensures the seamless progression of its planned exploration activities in 2024, which he says the company has allocated a considerable spending budget.
“We are eagerly anticipating another transformative year for GT1 in 2024 on our path to becoming 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.”
“We are eagerly anticipating another transformative year for GT1 in 2024 on our path to becoming Ontario’s first lithium producer”
Green Technology Metals is focused on building a pre-eminent vertically integrated lithium business in Ontario, Canada.
As of 30 September 2023, the company had $16.941 million cash and cash equivalents at hand, although it has added $14.6 million through the aforementioned flow-through.
Write to Adam Drought at Mining.com.au
Images: Green Technology Metals