Lithium Africa closes $8.82-million financing

Executive Summary

• Lithium Africa Corp. has closed an upsized brokered private placement of 4,411,565 units at $2.00 per unit, raising gross proceeds of $8,823,130.
• The proceeds will be used as partial consideration for the acquisition of the Springbok project and for working capital and general corporate purposes.
• Purpose Global Resource Fund is a new significant shareholder, subscribing for approximately $3.3 million (6.7% of issued and outstanding shares on an undiluted basis).

Key Details

• Transaction Structure: Brokered private placement of units.
• Units Sold: 4,411,565 units.
• Price Per Unit: $2.00.
• Gross Proceeds: $8,823,130.
• Net Proceeds Use: Partial consideration for the acquisition of the Springbok project; working capital; general corporate purposes.
• New Shareholder: Purpose Global Resource Fund subscribed for approximately $3.3 million, representing 6.7% of issued and outstanding shares on an undiluted basis.
• Unit Composition: Each unit consists of one common share and one-half of one share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one additional unit share at an exercise price of $2.80 per warrant share for a period of three years following closing.
• Agent: ATB Cormark Capital Markets acted as the agent.
• Agent Compensation:
  • Cash fee: Approximately $587,708.
  • Broker Warrants: 293,854 warrants issued to the agent.
  • Broker Warrant Terms: Exercisable into one common share at the offering price ($2.00) for a term of two years, expiring March 18, 2028.
• Insider Participation: Two insiders subscribed for 20,000 units ($40,000). This constitutes a related party transaction exempt from formal valuation and minority shareholder approval requirements under MI 61-101.
• Regulatory Status: Completed pursuant to exemptions from prospectus requirements in Canada and registration requirements in the U.S. Subject to final acceptance by the TSX Venture Exchange.
• Hold Period: Statutory hold period in Canada expires four months and one day from closing, on July 19, 2026.

Notable Quotes

• None provided in the text.