Bradda Head Lithium Ltd (AIM:BHL), the AIM-quoted lithium developer focused on North America, has raised approximately £2.12 million through a placing and subscription of 94.3 million new shares at 2.25 pence each.
The issue price represents a discount of about 2% to the closing price of 2.3 pence on 16 July.
Proceeds will fund the start of drilling at Whistlejacket, the Arizona project Bradda is developing under a joint venture with Kennecott, the US arm of Rio Tinto.
The company will also carry out further exploratory drilling at its San Domingo pegmatite project and advance work towards NI 43-101 technical reports across its Arizona hard rock portfolio.
NI 43-101 is the Canadian reporting standard used to verify mineral resource estimates before a project can be judged commercially viable.
Alongside the fundraise, outstanding convertible loans totalling $1.87 million advanced by Galloway and Promaco will convert into 68.5 million shares at 2.03 pence, leaving Bradda debt-free.
Galloway is indirectly wholly owned by Jim Mellon, a director and the company's largest shareholder, while Promaco is owned by executive chair Ian Stalker.
Galloway has also subscribed for 32.9 million new shares in the fundraise.
Directors and senior staff have exercised share options at 1.5 pence and 2 pence, raising a further £113,750 for the issue of 7.25 million shares, taking total proceeds to roughly £2.235 million.
Stalker exercised 5 million options, with Promaco, Euan Jenkins and Alex Borrelli accounting for the balance.
Participants in the fundraise will receive one warrant for every two shares subscribed, exercisable at 5 pence over two years, though the warrants will not be admitted to trading.
A retail offer on the same terms will be launched shortly, giving UK private investors the chance to participate.
Stalker said the fundraise would accelerate work at both Whistlejacket and San Domingo in support of maiden mineral resource estimates, pushing the company towards a production decision in early 2027.
Mellon and fellow director Denham Eke were excluded from the board's consideration of the subscription, which constitutes a related party transaction under AIM rules.
