American Critical Minerals Corp. [KCLI-CSE, APCOF-OTCQB, 2P30] is raising $6.0 million from a bought deal offering and concurrent non-brokered private placement.
The move comes after the company recently announced large-scale exploration targets for lithium and bromine at its Green River Project in Utah, complementing its existing exploration targets for potash.
The company holds a 100% interest in 11 State of Utah potash and lithium leases, 1094 placer claims and 11 Federal potash prospecting licenses. Through these leases, claims and permits, the company can explore for potash, lithium, and potential by-products across the entire Green River Project, which covers a total area of approximately 32,530 acres. The project is situated in the renowned Paradox Basin, host to the same geological setting as Intrepid Potash Inc.’s [IPI-NYSE] Moab solution mine, where potash mineralization has been mined since 1964. Intrepid Potash is America’s largest potash company and the only U.S. domestic potash producer.
American Critical says ian underwriter has agreed to purchase, on a bought deal basis,11.4 million units priced at 35 cents each, generating gross proceeds of $4.0 million.
The company has also announced a concurrent non-brokered private placement of up to 5.7 million units priced at 35 cents per for additional gross proceeds of $2.0 million.
Each unit consists of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 45 cents per share for 36 months after the offering closes, provided that holders will not be permitted to exercise warrants until 60 days after closing, which is expected to occur during the week of October 27, 2025.
The company has granted the underwriter an option to increase the size of the offering by up to an additional number of units that would be equal to 15% of the total number of units issued. That option can be exercised at any time up to 48 hour prior to closing of the offering.
The shares were unchanged Thursday at 46 cents and trade in a 52-week range of 50 cents and 13 cents.
The history of oil and gas production across the Paradox Basin provides geologic data from historic wells across the project, and the wider Basin, validating and de-risking the potential for high grade potash and large amounts of contained lithium. Wells in and around the project reported lithium up to 500 ppm, bromine up to 6,100 ppm and boron up to 1,200 ppm. The data is reinforced by nearby potash production and the advanced stage of neighbouring lithium projects. The Paradox Basin is believed to contain up to 56 billion tonnes of lithium brines, potentially the largest such resource in the U.S.
The company also has a 43-101 exploration target of 600 million to one billion tonnes of sylvinite (the most important source for the production of potash in North America) with average grades ranging from 19% to 29% KCL.
