ACME Lithium Inc said it has completed its previously-announced US$3 million funding agreement with Lithium Royalty Corp and Waratah Capital Advisors Ltd, which consists of a private placement financing and a royalty sale on ACME's two projects in Manitoba.
The company noted that it will use the gross proceeds of the private placement for exploration at its 100% owned Cat-Euclid and Shatford Lake lithium projects in Manitoba and its Clayton Valley and Fish Lake Valley projects in Nevada, as well as general working capital purposes.
ACME said it received US$650,000 from the grant of project royalties on its Manitoba lithium assets and US$2.35 million by way of the non-brokered private placement.
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It added that Lithium Royalty Corp purchased the 2% gross overriding royalty on lithium or other metals from ACME's Euclid-Cat Lake and Shatford Lake projects, the proceeds of which will be directed to exploration on those properties.
The private placement consisted of 3,179,500 ACME Lithium units, issued at a price of C$0.94 per unit, with each unit comprised of one common share plus one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share for two years at a price of C$1.22.
As a result of the funding, ACME said its working capital is about C$7.2 million with no debt.
Led by an experienced team, ACME Lithium is focused on acquiring, exploring and developing battery metal projects in partnership with leading technology and commodity companies.
The company has acquired, or is under option to acquire, a 100% interest in projects located in Clayton Valley and Fish Lake Valley, Esmeralda County Nevada, and in southeastern Manitoba.
Contact Sean at sean@proactiveinvestors.com