Australian Securities Exchange (ASX)-listed Loyal Lithium (LLI) has raised A$3.3m ($2.1m) through a share placement, involving the issuance of 7,345,744 new shares.

The shares were priced at A$0.45 each, marking a 73% premium over the company’s 15-day VWAP of A$0.26.

LLI noted that the placement was conducted under the “flow-through shares” scheme, a provision of Canadian tax law, with Canaccord Genuity acting as the sole lead manager.

The company has acknowledged strong market support for the placement, with a preference given to major existing shareholders in Australia and Canada.

Funds from this placement are earmarked for the Trieste Lithium Project, located along the resource-rich Trieste Greenstone Belt in James Bay, Quebec.

The project is in proximity to several spodumene-bearing lithium ventures, and the capital will facilitate an innovative geophysical survey, an extensive summer field programme and a targeted drilling campaign, all aimed at advancing the project’s development.

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LLI managing director Adam Ritchie said: “The demand for the placement and ongoing support from our shareholders has been overwhelming.

“The vast majority of our major shareholders participated in this placement, including Jody Dahrouge, principle of our in-country geological partner, Dahrouge Geological Consulting. Their support is a reflection of the potential of the project and the solid foundation that our team has built in Canada.

“The “flow-through shares” provisions under Canadian tax law reduces shareholder dilution but more importantly ensures valuable exploration and development work can be accelerated.”