Consolidated Lithium closes first tranche of placement

Executive Summary

• Consolidated Lithium Metals Inc. has closed the first tranche of its previously announced non-brokered private placement, raising approximately $7.885 million in aggregate gross proceeds.
• The financing consists of three distinct tranches of securities: LIFE units, critical flow-through shares, and charity flow-through units, each with specific pricing and warrant structures.
• The company intends to use the proceeds primarily for exploration expenses and critical mineral mining expenditures on the Kwyjibo rare earth project and lithium properties, with remaining net proceeds allocated to working capital.

Key Details

• Total Gross Proceeds: Approximately $7,885,000.
• Tranche 1 (LIFE Units):
  • Quantity: 27,500,000 units.
  • Price: $0.08 per LIFE unit.
  • Gross Proceeds: $2,200,000.
  • Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Exemption: Listed issuer financing exemption.
• Tranche 2 (Critical Flow-Through Shares):
  • Quantity: 23,437,502 shares.
  • Price: $0.096 per critical FT share.
  • Gross Proceeds: $2,250,000.
  • Tax Status: Qualifies as a flow-through share under Subsection 66(15) of the Income Tax Act (Canada).
• Tranche 3 (Charity Flow-Through Units):
  • Quantity: 28,625,000 units.
  • Price: $0.12 per charity FT unit.
  • Gross Proceeds: $3,435,000.
  • Composition: Each unit consists of one common share and one-half of one warrant, qualifying as flow-through shares.
  • Structure: Issued as part of a charity arrangement; purchasers may donate or sell reoffer units.
• Warrant Terms:
  • Standard Warrants: Exercise price of $0.12 per common share; exercisable until March 17, 2029.
  • LIFE Unit Warrants: Not exercisable until May 16, 2026.
• Finder’s Fees:
  • Cash Paid: Approximately $630,800.
  • Warrants Issued: 6,365,000 non-transferable finder warrants.
  • Breakdown:
    • 2,200,000 warrants at $0.08 exercise price (linked to LIFE units).
    • 1,875,000 warrants at $0.096 exercise price (linked to critical FT shares).
    • 2,290,000 warrants at $0.12 exercise price (linked to charity FT units).
  • Finder Warrant Terms: Each entitles holder to one common share and one-half of one warrant; subject to a four-month hold period ending July 18, 2026.
• Use of Proceeds:
  • Critical FT Shares and Charity FT Units: Exploration expenses and critical mineral mining expenditures on the Kwyjibo rare earth project and lithium properties.
  • LIFE Units: Working capital and general corporate purposes.
• Regulatory Status:
  • Offered securities under listed issuer financing exemption and OSC Rule 72-503 are not subject to a hold period.
  • Critical FT shares issued under other NI 45-106 exemptions are subject to a statutory four-month hold period ending July 18, 2026.
  • Offering remains subject to final acceptance by the TSX Venture Exchange.
• Future Expectations: Management expects to close the second tranche on or about April 7, 2026.

Notable Quotes

• "We are very pleased to have successfully closed the first tranche of our financing, which represents an important milestone for the company and a strong vote of confidence from our investors. We look forward to completing the second tranche, which we currently expect to close on or about April 7, 2026, and to deploying the capital to advance our exploration, development and business plans." — Richard Quesnel, CEO