Arizona Lithium Limited (ASX: AZL | OTC: AZLAF) has received firm commitments to raise A$16.5M (before costs) via a flow through financing placement to institutional and sophisticated investors, to further advance the Prairie Project.
The commitments to raise the funds is through a strongly supported share placement to institutional and professional investors, with AZL receiving an average price of A$0.051 per newly issued share with one free attaching option (AZLO) per two new shares.
Managing director, Paul Lloyd, commented, “We are extremely pleased to have successfully completed the placement to raise A$16.5M to fund further work on the Prairie Project. It is testament to the strategic planning of the management team, and the Canadian government incentives, that we were able to have an oversubscribed placement at a 30% premium to our last closing price.”
“We are excited to continue delivering positive updates to shareholders, including the release of the pre-feasibility study at the Prairie Project, which we believe will add significant value to the company. We look forward to an exciting 2024, with funding in place to drill exploration wells, complete existing wells and move towards production in the first half of 2025.” Lloyd added.
The options will be ASX listed and add to the currently listed AZLO class. The options are exercisable at A$0.05 each expiring 10 August 2025, with the proceeds from the exercise of the options to provide further funding. The proceeds from the placement will further strengthen the company’s balance sheet and allow Arizona Lithium to continue work on the Prairie Project, specifically with exploration in the Dawson Bay and Souris River Formations.
Following this, the company will use its existing funds to complete the wells in preparation to move into production in the first half of 2025. All activities will be outlined in the preliminary feasibility study (PFS) which is expected to be released by the end of 2023.
To find out more, please visit www.arizonalithium.com
To read more articles like this, please visit www.theassay.com/news