Lithium Africa Closes $8.8 Million Brokered Private Placement of Units

Executive Summary

• Lithium Africa Corp. closed an upsized private placement of 4,411,565 units at C$2.00 per unit, raising gross proceeds of C$8.823 million.
• The net proceeds will be used partially as consideration for the acquisition of the Springbok Project and for working capital/general corporate purposes.
• Purpose Global Resource Fund became a new significant shareholder with an investment of approximately C$3.3 million (6.7% ownership).

Key Details

• Units sold: 4,411,565 units at C$2.00 per unit → Gross proceeds: C$8,823,130.
• Unit composition: each unit = 1 share + ½ warrant; each whole warrant allows purchase of one additional share at C$2.80 for three years post‑closing.
• Agent: ATB Cormark Capital Markets (cash fee ≈ C$587,708).
• Broker Warrants issued to Agent: 293,854 warrants exercisable into common shares at the offering price; term of two years, expiring 18 Mar 2028.
• New significant shareholder: Purpose Global Resource Fund subscribed ~C$3.3 million (≈6.7% of outstanding shares on an undiluted basis).
• Use of proceeds: partial consideration for acquisition of the Springbok Project; remainder for working capital and general corporate purposes.
• Related party transaction: two insiders purchased 20,000 units ($40,000); exempt from MI 61‑101 valuation/approval thresholds.
• Regulatory notes: Offering completed under prospectus exemptions; securities subject to a statutory hold period in Canada until 19 Jul 2026; pending final acceptance by the TSX Venture Exchange.

Notable Quotes

• Tyron Breytenbach, CEO & Director: “The successful closing of this private placement not only strengthens our balance sheet but also provides the necessary capital to move forward with the strategic acquisition of the Springbok Project.”