NOA Lithium Brines closes $5.91-million financing

Executive Summary

• NOA Lithium Brines Inc. has closed a bought deal private placement raising gross proceeds of C$5.9 million.
• The company intends to use the net proceeds to advance its Rio Grande lithium brine project in Argentina, along with general corporate purposes and working capital.
• Clean Elements Ltd., a significant shareholder, participated in the financing, subscribing for 5.77 million units.

Key Details

• Gross Proceeds: C$5,918,692.
• Units Sold: 22,764,000 units at a price of C$0.26 per unit.
• Underwriter: Red Cloud Securities Inc. acted as sole underwriter and bookrunner.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of C$0.40. Warrants expire on December 1, 2028.
• Use of Proceeds: Advancement of the Rio Grande project in Salta, Argentina; general corporate purposes; and working capital.
• Clean Elements Participation: Clean Elements Ltd. subscribed for 5,770,000 units on the same terms as arm's-length investors.
• Related Party Transaction: Clean Elements owns 31.4% of issued shares (non-diluted) and 34.65% on a fully diluted basis. The transaction is exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.
• Broker Compensation: Red Cloud received a cash commission of $250,929.12 and 965,112 broker warrants (exercisable at C$0.40, expiring Dec 1, 2028). Broker warrants are subject to a statutory hold period until April 2, 2026.
• Regulatory Status: Closing is subject to final approval of the TSX Venture Exchange. Securities are freely tradeable in Canada (except for Clean Elements' shares which have a 4-month-and-one-day hold period).

Notable Quotes

• "We are satisfied with the strong interest shown in this financing. We would like to thank Clean Elements for its continued support and commitment to the company, as evidenced by its participation in this placement. We will continue advancing the development of our flagship Rio Grande project, with the goal of taking it to feasibility and then production in the shortest possible time. We are confident that the recent trend toward recovery in lithium prices, which appears to be gradually materializing, will facilitate the achievement of our goals and objectives." — Gabriel Rubacha, CEO