Battery minerals explorer Solis Minerals (ASX:SLM) reports it has elected to not enter a formal option funding agreement with institutional fund manager Lind Partners.
Under the proposed agreement, Lind Partners would have provided $2 million in financing, which was to be repaid from funds received on the exercise of Solis’ $0.30 unquoted options currently on issue, to provide extra funding to supplement the company’s recent $8 million placement.
Solis says given the ‘strong’ support for the placement, it no longer requires the capital from the option funding agreement
Solis says given the large number of relevant options that have already been exercised, and the ‘strong’ support for the placement, it no longer requires the capital from the option funding agreement.
In consideration for the option funding agreement, Lind Partners would have received 3 million unlisted options with an exercise price of $0.77, expiring 12 months from the date of issue.
Lind Partners would have also received a fixed interest fee of 10% and standard establishment fee, and Solis would have been required to pay the first $500,000 of advanced funds within 6 months from the date of entering the agreement.
Solis closed tranche one of the placement on 19 June 2023 and is in the process of seeking shareholder approval for the issue of tranche two of its placement.
Under tranche one, the company issued about 5.545 million shares at $0.55 to raise $3.050 million, which will be used to conduct exploration at its recently acquired Jaguar Lithium Project and the Borborema Lithium Project in Brazil.
Subject to shareholder approval in a general meeting scheduled for July 2023, Solis will issue about 9.281 million shares under tranche two to raise about $5.105 million.
Solis Minerals is an ASX-listed battery minerals explorer with a portfolio of assets in Latin America. These assets include the Jaguar Lithium Project in Bahia state and the Borborema Lithium Project in northeast Brazil.
The company also holds 32,400 hectares of combined licences and applications for ‘highly prospective’ iron oxide copper-gold (IOCG) and porphyry copper projects in southwestern Peru.
As of March 31, and prior to the capital raise, the company had a cash balance of $1.8 million.
Write to Harry Mulholland at Mining.com.au
Images: Solis Minerals
