Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF), the owner of the Clayton Valley lithium asset in Nevada, USA, has revealed an upsizing to its previously announced bought deal financing to now raise gross proceeds of C$16 million to advance the project.
The company earlier today announced a C$12 million offering, but this has been amended due to strong investor demand. PI Financial Corp will act as the underwriter and bookrunner and has agreed to buy, on a bought deal basis, 8 million units of the company at C$2 a unit.
Each unit consists of one company share and one warrant. Each warrant is exercisable for one company share for 24 months from closing at a price of C$2.65.
Cypress Development has also granted the underwriter an over-allotment option, exercisable in whole or part, for 30 days following closing, to buy a further 15% of units sold in the offering on the same terms.
READ: Cypress Development pleased with pilot plant's performance in Nevada as it extends lease of facility to 2025
The offering is expected to close on or around February 3, 2022.
The company describes Clayton Valley as a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine - North America's only lithium brine operation. It aims to produce high-purity lithium hydroxide suitable for tier-one battery usage.
In December last year, Cypress reported the successful start-up of the pilot plant in Nevada, which is extraction testing lithium-bearing claystone from Clayton Valley.
It also reported a successful seven-day continuous test run at the plant and the extension of its lease at the facility to 2025.
-- Updates with upsizing details --
Contact the author at giles@proactiveinvestors.com