#Portugal #Lisbon #Lithium Africa #Ganfeng Lithium #3L Capital

Lithium Africa Resources Corp. Secures $6M for Growth

Lithium Africa Resources Corp. is poised for growth with its recent announcement regarding a significant equity financing initiative aimed at raising up to $6 million. This funding effort, which involves the engagement of 3L Capital Inc. as the lead agent, aims to support not just financial needs but also lays the groundwork for the company’s impending listing on a recognized Canadian stock exchange.

Financing Details

The company is conducting a private placement, referred to as the Brokered Offering, through which it plans to issue units that comprise one common share, a common share purchase warrant, and a special warrant. Engaging 3L Capital means that the company will benefit from the expertise of a seasoned player in the equity financing space, providing confidence to prospective investors.

In conjunction with the Brokered Offering, Lithium Africa will also execute a non-brokered private placement to stimulate robust investment interest. A notable highlight of this endeavor is the expected participation of GFL International Co. Ltd., a substantial shareholder that is part of Ganfeng Lithium. This move is intended to maintain their current 19% ownership stake in the company.

Strategic Intentions

The goal of the capital raise is multi-faceted. The company has outlined its commitment to exploring and developing its extensive portfolio across Africa, specifically targeting projects with significant potential in the lithium sector. Additionally, some of the funds will be allocated toward preparing for the public listing on the Canadian exchange, expected to occur within the next six months after the closure of the offering.

Unit Composition

Investors in the Brokered Offering will acquire units consisting of:
1. One common share,
2. One common share purchase warrant, and
3. One special warrant.

Each common share purchase warrant allows the holder to acquire an additional common share at a 30% premium over the issue price, valid for five years post-closing. Moreover, the inclusion of special warrants promises additional common shares, subject to standard adjustments, from which investors can gain extra value.

Closing Timeline

Anticipated to close around March 31, 2025, the offering remains contingent on obtaining all necessary regulatory approvals. This timeline indicates the company is actively working towards its goals while navigating the complexities of capital markets.

Market Position and Future Outlook

At present, Lithium Africa is not yet a reporting issuer in Canada, meaning its securities are not publicly tradable until the requisite transitioning occurs into a reporting status. This transition is essential for paving the way for future growth and liquidity for investors.

Beyond the immediate financing, Lithium Africa's partnership strategy with Ganfeng Lithium aims to leverage shared expertise and local insights to advance exploration efficiently, targeting high-quality spodumene production within sustainable frameworks. The company's expansive landholdings in regions like Morocco, Ivory Coast, Guinea, Mali, and Zimbabwe reinforce its strategic positioning in the rapidly advancing lithium market.

In conclusion, the $6 million equity financing signals a pivotal step for Lithium Africa in securing the resources necessary for growth and reinforcing its commitment to delivering value to shareholders as it prepares for a future public offering in Canada. With a robust plan, experienced partners, and strategic funding, Lithium Africa is well-positioned to navigate the evolving landscape of the lithium sector.