Atlantic Lithium Limited (ASX: A11) has announced a trading halt, with the company seeking to finalize details of a capital raising.
The halt affects ordinary shares only and will come into effect at the start of trading today, on 10 August 2020, and will remain in place until the start of trading on Tuesday, 11 August 2020, or when an announcement is released to the market, whichever occurs first.
The trading halt follows the company’s announcement of the execution of a binding term sheet with Breakaway Capital Pty Ltd to raise approximately A$2.3 million by way of an equity placement. The equity funds raise will boost the company’s current cash reserves as it works to progress the valuation and evaluation of prospective lithium projects located in Ontario, Canada.
Atlantic Lithium is focused on the acquisition and development of lithium projects in jurisdictions rated as “Investment Grade” by the World Bank, with a current focus in Canada.
Atlantic Lithium has targeted the acquisition of projects in Canada as the jurisdiction offers a competitive, business-friendly environment for the exploration and development of lithium projects. Additionally, the resources are abundant in the northern soils of Canada and already known to Date with several existing lithium operations.
The proceeds of the equity raise will be used for the ongoing acquisition and evaluation of the company’s prospective lithium projects located in the Canadian province of Ontario, and other corporate purposes.
The capital raising will be conducted by way of a placement to sophisticated, professional and professional investors in accordance with the company’s existing capacity under ASX Listing Rules 7.1 and 7.1A.
Atlantic Lithium is exploring the possibility of a further capital raising, but the details and timing of such a raise has not been finalized by the company.
The company believes the resources in Ontario are suitable for the development of a chemical lithium extraction system and Atlantic Lithium’s long-term plans are to bring the development of a lithium extraction process in the region. The joint venture, plans for the development of an on-site pilot extraction plant for further evaluation of the resources.
Should the capital raise not proceed, there is no certainty that Atlantic Lithium will have the required cash resources to proceed with its planned exploration and development activities.
This trading halt will provide the company with the additional time needed to secure the required funds for project development and exploration activities.
Summary
Atlantic Lithium Limited (ASX: A11) has announced a trading halt to finalise the details of an equity placement which is intended to raise approximately A$2.3 million. The purpose of the raise is to bolster the company’s current cash reserves and progress the evaluation and development of prospective lithium projects in Ontario, Canada. As part of the equity raise, funds will also be allocated for other corporate purposes. Depending on the outcome of the capital raising, there is no certainty that the company will have the requisite resources to move forward with its planned exploration activities. The trading halt will remain in place until the start of trading on Tuesday, 11 August 2020, or when an announcement is released to the market, whichever occurs first.
Atlantic Lithium Limited (ASX: A11) has announced a trading halt, with the company seeking to finalize details of a capital raising.
The halt affects ordinary shares only and will come into effect at the start of trading today, on 10 August 2020, and will remain in place until the start of trading on Tuesday, 11 August 2020, or when an announcement is released to the market, whichever occurs first.
The trading halt follows the company’s announcement of the execution of a binding term sheet with Breakaway Capital Pty Ltd to raise approximately A$2.3 million by way of an equity placement. The equity funds raise will boost the company’s current cash reserves as it works to progress the valuation and evaluation of prospective lithium projects located in Ontario, Canada.
Atlantic Lithium is focused on the acquisition and development of lithium projects in jurisdictions rated as “Investment Grade” by the World Bank, with a current focus in Canada.
Atlantic Lithium has targeted the acquisition of projects in Canada as the jurisdiction offers a competitive, business-friendly environment for the exploration and development of lithium projects. Additionally, the resources are abundant in the northern soils of Canada and already known to Date with several existing lithium operations.
The proceeds of the equity raise will be used for the ongoing acquisition and evaluation of the company’s prospective lithium projects located in the Canadian province of Ontario, and other corporate purposes.
The capital raising will be conducted by way of a placement to sophisticated, professional and professional investors in accordance with the company’s existing capacity under ASX Listing Rules 7.1 and 7.1A.
Atlantic Lithium is exploring the possibility of a further capital raising, but the details and timing of such a raise has not been finalized by the company.
The company believes the resources in Ontario are suitable for the development of a chemical lithium extraction system and Atlantic Lithium’s long-term plans are to bring the development of a lithium extraction process in the region. The joint venture, plans for the development of an on-site pilot extraction plant for further evaluation of the resources.
Should the capital raise not proceed, there is no certainty that Atlantic Lithium will have the required cash resources to proceed with its planned exploration and development activities.
This trading halt will provide the company with the additional time needed to secure the required funds for project development and exploration activities.
Summary
Atlantic Lithium Limited (ASX: A11) has announced a trading halt to finalise the details of an equity placement which is intended to raise approximately A$2.3 million. The purpose of the raise is to bolster the company’s current cash reserves and progress the evaluation and development of prospective lithium projects in Ontario, Canada. As part of the equity raise, funds will also be allocated for other corporate purposes. Depending on the outcome of the capital raising, there is no certainty that the company will have the requisite resources to move forward with its planned exploration activities. The trading halt will remain in place until the start of trading on Tuesday, 11 August 2020, or when an announcement is released to the market, whichever occurs first.
