Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF)'s recent financing has provided it with the financial flexibility to advance its Angel Island lithium project, according to analysts at Noble Capital Markets.
The company closed the second and final tranche of its financing under the Listed Issuer Financing Exemption (LIFE). With the initial closing, it issued 15.8 million units for aggregate gross proceeds of C$4.7 million.
“Net proceeds from the financing 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 fund general working capital,” the analysts noted.
They repeated their ‘Outperform’ rating on Century Lithium and awarded it a price target of C$2.35, which implies upside of more than 1100% from its current share price.
“With US government support for domestic critical mineral production, Angel Island is one of a few advanced lithium projects being developed in the United States to provide an end-to-end process to produce battery-grade lithium,” the analysts wrote.
“Recent successes by companies using Century’s lithium carbonate in their battery development highlight the commercial viability of the Angel Island project.”