Premier1 Lithium (ASX:PLC) is raising $1.84 million through a partially underwritten renounceable offer, engaging Mahe Capital with a $1 million investment ahead of exploration at the Yalgoo and Abbotts projects, in Western Australia.
The company will offer one share for every existing share held at an issue price of $0.015 to expire three years from the date of issue.
The issue price represents a 50% discount to the last closing price of $0.01 on 7 October, as well as a 50% discount to the 15-day volume weighted average price (VWAP).
As listed in the underwriting agreement, the company will issue five underwriter options for every $1 raised in the offer.
The company will also pay a $60,000 fee in cash, a fee valued at 1% of the gross proceeds raised, a cash fee equal to 5% of the underwritten amount, and a cash fee equal to 1% of shortfall shares placed beyond the underwritten amount.
Premier1 intends to use funds to conduct a drilling campaign at the Yalgoo Project, focusing on the first exploration program at the Mt Kersey target while also growing the resource estimate for Wadgingarra.
The company will also streamline drilling at the Abbotts North Project, as well as geophysical and heritage surveys across both projects.
Managing Director Jason Froud says the company’s immediate focus is on advancing the Yalgoo Project for resource growth and mineralisation expansion.
“At the same time, systematic exploration at Abbotts North, including follow-up work at the newly identified Rochefort gold prospect, will further strengthen our project pipeline,” Froud says.
“The programs funded through this entitlement offer will position Premier1 to deliver meaningful exploration outcomes across both our Yalgoo and Abbotts North projects over the coming months.”
Premier1 Lithium is focused on exploring across Western Australia to unlock its gold, copper, and lithium projects within greenstone belts.
Write to Maddison Elliott at Mining.com.au
Images: Premier1 Lithium
