Vancouver-based Q2 Metals (TSX-V:QTWO) has increased the price of the charity flow-through unit component of its recently announced C$7.5 million ($8.1 million) placement.
Q2 is now offering up to 10.5 million units at C$0.475, up from 10.8 million units at C$0.4625, previously, to raise $5 million of the targeted total. Each unit will consist of one flow-through common share and half a share purchase warrant.
Each full warrant will be exercisable for one non-flow through common share at C$0.50 within two years.
Canada-listed companies can issue flow-through shares that allow investors to claim tax credits for the amount they invest. Shares offered under this mechanism are usually issued at a premium to the price of a company’s shares at the time.
The rest of the offer terms remain the same. By increasing the offer price, Q2 stands to raise a further C$5,000 if all shares are taken up.
The cash raised from the issue of these flow-through shares will be used to fund exploration.
Q2 has a portfolio of lithium projects in the Eeyou Istchee James Bay region of Québec, including the Cisco Lithium Property.
The junior explorer, which has a market capitalisation of just over C$21 million, says Cisco has “district-scale potential” with an already identified mineralised zone and a discovery drill result of 115.4m @ 1.40% lithium oxide, cumulatively in five separate pegmatites.
Exploration at the 8,668-hectare Mia Lithium Property, meanwhile, is focused on the more than 10-kilometre-long Mia trend, which is host to both the Mia 1 and Mia 2 lithium occurrences and 11 other mineralised zones along trend.
The non-brokered placement is scheduled to close on 31 July 2024.
Write to Angela East at Mining.com.au
Images: Q2 Metals
