Canadian mineral exploration company Stillwater Critical Minerals has launched a non-brokered private placement, with lead order from Glencore Canada.
The offering includes the issuance of up to 17,857,143 units at $0.14 apiece, targeting gross proceeds of around C$2.5m ($1.8m).
Glencore Canada, a subsidiary of the global mining giant Glencore, has committed to a significant portion of the placement.
The company agreed to buy 15 million units, contributing C$2.1m to the total proceeds.
Each unit offered in the placement comprises one common share and one half of one common share purchase warrant.
The full warrant allows the holder to acquire an additional common share at an exercise price of $0.21, which could provide Stillwater with up to nearly C$1.875m in additional funding if all warrants are exercised.
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These warrants will be exercisable for a period of three years from the date of issue.
The funds raised will be earmarked for Stillwater’s exploration and development work at its nickel projects in North America.
Additionally, a portion of the funds will be allocated to working capital needs.
The placement is subject to standard closing conditions, including the acceptance by the TSX Venture Exchange.
In June 2023, Glencore Canada acquired C$4.94m of Stillwater’s units, to secure a 9.99% interest in the latter on a non-diluted basis.
Stillwater president and CEO Michael Rowley said: “We are pleased to have Glencore’s continued support through their participation in this placement as we advance our flagship Stillwater West project as a large-scale source of nine metals that are now listed as critical in the US.
“With the largest nickel resource in an active US mining district, and high co-product values of copper, cobalt, palladium, platinum, rhodium and gold, we are uniquely positioned to play a key role in the US government’s stated objective of building domestic supply chains of these essential commodities.”
