Green Technology Metals (GT1), a North American-focused lithium explorer, has secured firm commitments to raise around A$14.6m ($10.7m) in a flow-through share placement.

The company will raise the funds by issuing 39.4 million of its shares at A$0.37 apiece. This represents a 32% premium to the stock close on 5 December 2023.

Canaccord Genuity (Australia) served as the lead manager for the flow-through, while Fosters Stockbroking and Bell Potter Securities were the co-managers.

The company will use the proceeds from the share issue to continue exploration activities at its Root Bay prospect and the maiden drilling programme at its Junior lithium project, both in Ontario, Canada.

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By GlobalData

Located about 300km from Thunder Bay, Ontario, the Root project hosts the Root Bay prospect.

This project, including both the McCombe and Root Bay prospects, has an inferred mineral resource estimate of 12.6 million tonnes at 1.21% lithium oxide (Li2O) and with 62 parts per million of tantalum pentoxide (Ta2O5).

It incorporates an additional 8.1million tonnes at 1.32% Li20 from the Root Bay deposit to the reported 4.5 million tonnes at 1.01% Li2O from the McCombe deposit.

Before 2023, the Root Bay prospect was identified as a small pegmatite outcrop with finer-grained spodumene mineralisation.

After initial success with three holes, the company extended the drill programme to complete 35 holes totalling 8,806m.

These drills reveal multiple, shallow-dipping lithium-cesium-tantalum (LCT) pegmatite systems, with lithium grades of up to 1.73% of Li2O.

Junior Lake hosts three drill-ready LCT pegmatite prospects, which indicate the project’s lithium potential.

GT1 executive director Cameron Henry said: “This financing round strategically leverages the least dilutionary mechanism for shareholders by optimising the benefits of the Canadian flow through benefits regime. GT1 has allocated a considerable spend budget for exploration and feasibility works through 2024 and this funding ensures the seamless progression of our planned exploration activities.

“We are eagerly anticipating another transformative year for GT1 in 2024 on our path to become 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 programme planned at the Junior Lithium Project and further definition drilling planned for Root.”