LI-FT Power Ltd. (ASX: LFT) has announced a significant capital raising, qualifying the distribution of 6,900,000 common shares to the public at an offering price of C$2.90 per share. This issuance is expected to generate gross proceeds of C$20,010,000 for the company. Li-FT Power Ltd. is a mineral exploration company engaged in the identification, acquisition, and exploration of lithium properties across Canada’s Northwest Territories and Quebec, aiming to advance these projects towards potential commercial development. The offering is being managed by a syndicate of underwriters led by Canaccord Genuity Corp.
A substantial portion of the net proceeds, approximately C$18,000,000, is earmarked for the initial care and maintenance (C&M) payment related to the company’s exclusive option to acquire the Renard diamond mine, processing facility, and associated infrastructure. This Renard Option, approved by the Superior Court of Quebec, grants Li-FT Power Ltd. a two-year period to decide on the acquisition, during which it assumes C&M costs. The effectiveness of this option and the release of the C$12,000,000 option fee held in trust are contingent on authorisation from the Ministère des Ressources naturelles et des Forêts by October 3, 2026, or an agreed alternative date, for the postponement of rehabilitation work.
Beyond the Renard Option’s C&M payment, the remaining C$409,500 from the offering’s net proceeds will be allocated towards working capital and general corporate purposes. The underwriting syndicate also holds an over-allotment option, exercisable for 30 days, to purchase up to an additional 1,035,000 common shares, which could bring in up to C$3,001,500 in additional gross proceeds, mainly for working capital. The company highlighted that the Renard Option agreement is subject to ongoing review and final approval from the TSX Venture Exchange, and future funding will be required for the second year of C&M and potential exercise of the option, underscoring the need for additional financings.
