Lithium Africa increases placement to $8.5-million

Executive Summary

• Lithium Africa Corp. has upsized its best efforts private placement from C$5.0 million to C$8.5 million due to strong investor demand, led by a C$3.3 million commitment from Purpose Global Resource Fund.
• The offering consists of 4.25 million units priced at C$2.00 per unit, with each unit comprising one common share and one-half of one common share purchase warrant.
• Net proceeds will be used as partial consideration for the acquisition of the Springbok project and for working capital and general corporate purposes.

Key Details

• Offering Size: Upsized to aggregate gross proceeds of C$8.5 million (increased from C$5.0 million).
• Lead Investor: Purpose Global Resource Fund has secured a lead order of approximately C$3.3 million.
• Unit Structure: Each unit consists of one common share and one-half of one common share purchase warrant.
• Price: C$2.00 per unit.
• Total Units Issued: 4.25 million units.
• Warrant Terms (Investors): Each warrant entitles the holder to purchase one common share at an exercise price of $2.80 per warrant share for a period of three years following closing.
• Over-Allotment Option: The agent has an option to sell an additional 750,000 units at $2.00 per unit for additional gross proceeds of $1.5 million.
• Agent Compensation:
  • 7.0% cash commission on gross proceeds.
  • Broker warrants equal to 7.0% of the number of units sold.
  • Broker warrant terms: Entitle holder to acquire one common share at the offering price ($2.00) for a period of two years following closing.
• Use of Proceeds: Partial consideration for the acquisition of the Springbok project; working capital; and general corporate purposes.
• Closing Date: Expected on or about March 18, 2026, subject to regulatory approvals including TSX Venture Exchange acceptance.
• Regulatory Context: Private placement pursuant to applicable exemptions from prospectus requirements in Canada.

Notable Quotes

• "As a result of strong investor demand, Lithium Africa Corp. and ATB Cormark Capital Markets have agreed to increase the size of its previously announced best efforts private placement..."
• "In connection with the offering, the company is pleased to announce that it has secured a lead order of approximately $3.3-million from Purpose Global Resource Fund."