Volt Lithium Corp. [VLT-TSXV, VLTLF-OTCQB, 12D-FSE] has announced a $5.0 million marketed public offering of units, plus a $1.1 million concurrent private placement of units. Net proceeds will be used to develop the company’s direct lithium extraction technology to improve operating efficiencies, and to continue to the scale-up of operations at its field unit in the Delaware basin in Texas.
The company said it is aiming to raise up to $5.0 million from a public offering of 16.2 million units priced at 31 cents per unit. Closing of the offering is expected to occur on November 19, 2024.
Under the terms of the offering, each unit will consist 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 44 cents for 24 months following completion of the offering.
The agent has been granted an option of purchase up to an additional 2.43 million units for 30 days from and including the closing date to cover overallotments, if any and for market stabilization purposes. If the overallotment option is exercised in full, proceeds of the offering will increase to $5.75 million.
In addition, the company plans to issue to certain accredited investors, on a private placement basis, concurrent with the closing of the offering, up to approximately 3.5 million units at the offering price, generating gross proceeds of approximately $1.1 million. The agent will receive up to 3.0% of the gross proceeds of the units sold to the purchasers and that number of broker warrants exercisable at any time, at a price of 44 cents per broker warrant, from the date of completion, to the date that is 24 months from the closing date, to acquire that number of units which is 3.0% of the number of units sold to the purchasers of the concurrent private placement.
The aggregate gross proceeds from the offering (assuming full exercise of the overallotment option) and the concurrent private placement, will be $6.85 million.
Volt shares eased 10.1% or $0.0035 to 31 cents. The shares trade in a 52-week range of 49 cents and 15.5 cents.
Volt has deployed, installed and commenced function testing of its first field unit located in the Permian basin in Texas, paving the way for the first lithium production.
The project is a collaboration with a major Permian Basin operator based on their previously announced strategic investment of US$1.5 million, money that was intended to be used to construct and deploy the field unit.
The company also said the field unit will be capable of processing over 200,000 litres (1,250 barrels) of oil field brine per day, representing a two-times scale up from Volt’s previous processing capabilities of 96,000 litres (600 barrels) per day, as announced in a press release on July 17, 2024.
Volt Lithium shares advanced on the news, rising 5.7% or $0.025 to 46 cents. The share are currently trading in a 52-week range of 48 cents and 15.5 cents.
