Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) has earned a repeat ‘Outperform’ rating from analysts at Noble Capital following its announcement of a Listed Issuer Financing Exemption (LIFE) offering that aims to raise up to C$5 million.
The company plans to issue up to 16.6 million units at C$0.30 each, raising a minimum of C$2 million.
The net proceeds will be used to complete an updated feasibility study for the company’s Angel Island Lithium Project, complete the project’s Plan of Operations, work towards National Environmental Policy Act (NEPA) compliance, and general working capital.
Noble’s analysts highlighted that Angel Island is one of just a few advanced lithium projects being developed in the United States to provide an end-to-end process to produce battery-grade lithium.
“Development of the project is proceeding well, and we think the completion of the LIFE offering will provide the necessary financial flexibility to ensure Angel Island remains in a leading position among US critical mineral projects,” they wrote.
The analysts also noted the advantages of Century Lithium choosing a LIFE offering over other financing vehicles.
“With a Listed Issuer Financing Exemption (LIFE), companies listed on Canadian stock exchanges may raise capital without the need to file a prospectus,” they wrote.
“Management indicated that Century Lithium selected the LIFE form of financing because it streamlines the process for eligible public companies and makes it easier for individual investors to participate in the offering. It is also generally less expensive.”
Shares of Century Lithium are up 16% in the year to date, trading hands at about C$0.30 on Wednesday afternoon.