Solis Minerals secures $3.05 million in first tranche of $8 million placement

Solis Minerals (ASX:SLM) has raised $3.05 million through the first tranche of a planned $8.155 million share placement to support exploration at its Jaguar and Borborema Lithium projects in Brazil.

Under tranche one, the company reports about 5.545 million shares were issued at $0.55 per share. Assisting brokers received in-aggregate fees of 6% of the funds raised under the placement, being a total of $183,000 with the closing of tranche one.

tranche two of the placement is subject to shareholder approval, which will be sought in a special shareholder meeting expected to be held on or around late July 2023

As previously reported by Solis, tranche two of the placement is subject to shareholder approval, which will be sought in a special shareholder meeting expected to be held on or around late July 2023. Through this second tranche, the company plans to raise about $5.105 million through the issue of around 9.281 million new shares.

On 8 June 2023, Solis reported it had received firm commitments for $8.155 million under the placement from sophisticated and professional investors, as well as North American institutional funds.

The company’s largest shareholder, Latin Resources (ASX:LRS), also increased its holding to 17.79%, while Solis directors subscribed for $200,000 of shares pending shareholder approval.

The funds raised in the placement will be used to complete the option fee and option exercise fee for the acquisition of the Jaguar Lithium Project, advance exploration at Jaguar, with drilling to begin before 30 June 2023, and advance the Borborema Lithium Project.

The funds will also be used to continue exploration at the Peruvian iron oxide copper-gold (IOCG) and copper porphyry projects, continue to assess and execute suitable project acquisitions, and contribute to ongoing general working capital.

Solis also entered a non-binding term sheet with Lind Partners for a further financing of $2 million, which will be repaid from funds received on the exercise of the company’s $0.30 unlisted options currently on issue.

In consideration for the option funding agreement and subject to shareholder approval, Lind Partners will receive 3 million unlisted options that can be exercised for $0.77 within 12 months from their date of issue.

Lind Partners will also receive a fixed interest fee of 10% and a standard establishment fee. Solis reports the option funding agreement remains subject to the entry of a formal agreement between the parties.

The company will also be required to pay back the first $500,000 of advanced funds within 6 months from the date of entry of the 12-month option funding agreement.

Solis Minerals is an ASX-listed battery minerals explorer that holds the 24,800-hectare Borborema Lithium Project in Northeast Brazil. The company recently executed an option to acquire the Jaguar Lithium Project in Bahia state, Brazil.

Along with Borborema and Jaguar, Solis also holds 32,400 hectares of combined licences and applications of ‘highly prospective’ IOCG and porphyry copper projects in southwestern Peru.

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Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.