Imagine Lithium Announces Drill Program and Convertible Note Financing
Imagine secures $3 million in battery investor funding to advance drilling at its lithium project in Ontario.
Imagine Lithium Inc. announced a $3,000,000 private placement of 7.0% secured convertible notes, which were fully subscribed by a single arm's length investor from the battery industry. The investor received a right of first refusal for any future lithium offtake arrangements. Conversion terms are set at $0.05 per share in Year 1, stepping up to $0.10 per share in Year 2+.
Proceeds will fund general corporate purposes and specifically advance the newly discovered Ruth Pegmatite and expansion drilling on the Casino Royale lithium zone. Concurrently, the company announced a 2,800-meter drill program on the Jackpot Lithium project: 1,200 meters to expand the Casino Royale resource and 1,600 meters to explore the Ruth Pegmatite. The drill program aims to upgrade NI 43-101 compliant resources, building on the existing 3.1 Mt indicated and 5.3 Mt inferred inventory.
Imagine Lithium Inc. (ILI) has secured financing to execute its previously announced 2,800-meter drill program, originally revealed in October 2025. The transaction features a conversion price of $0.05 for Year 1, representing a 150% premium to the current $0.02 share price. This pricing structure signals management’s confidence in long-term upside, though it introduces significant dilution risk if the stock price remains depressed.
Additionally, the deal includes a right of first refusal (ROFR) for offtake with a battery industry investor, providing strategic validation and slightly de-risking future commercialization efforts. However, this arrangement does not immediately impact near-term cash flows or resource estimates. The development is viewed as an expected, incremental step that funds announced exploration without delivering new resource data, production milestones, or price catalysts.
Imagine Lithium Inc. is a pre-production junior mineral exploration company with no revenue. Its flagship asset is the Jackpot Lithium Project, located in the Georgia Lake Pegmatite Field, approximately 140 km northeast of Thunder Bay, Ontario. The company’s land package comprises 27,597 hectares that are 100% owned, with an additional 8,449 hectares added via an option in December 2025.
As of September 2024, the company reported a mineral resource of 3.1 million tonnes indicated at 0.85% Li2O, containing 26,200 tonnes of Li2O, and 5.3 million tonnes inferred at 0.91% Li2O, containing 49,500 tonnes of Li2O. These figures are based on a cut-off grade of 0.30% Li2O.
Metallurgical testwork conducted by SGS on a 200 kg composite sample yielded a 6.0% Li2O spodumene concentrate with an 81.5% recovery and 0.76% Fe2O3. Further optimization through dense media separation (DMS) and flotation is planned.
Exploration efforts are currently focused on expanding the Casino Royale zone and testing the newly discovered Ruth Pegmatite, which has returned channel sampling results of up to 1.34% Li2O over 9.10 meters.