ACME Lithium Inc said it has entered into a binding term sheet with the Waratah Electrification and Decarbonization AIE LP for a non-brokered private placement through the issuance of 2,963,500 units at a price of C$1.08 per unit for aggregate gross proceeds of C$3,200,580.00, or approximately US$2,500,000.
The units in the private placement will consist of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of C$1.40 per share for three years.
ACME Lithium said it has also arranged a non-brokered flow-through (FT) financing with Probity Mining 2022 Short Duration Flow-Through Limited Partnership which will consist of 666,668 FT units at a price of C$1.50 per unit for aggregate gross proceeds of C$1,000,002.00.
The FT units consist of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of C$1.80 per share for two years.
READ: ACME Lithium reveals exploration update on its projects in Nevada, Manitoba, and Oregon
ACME said it will use the proceeds of the private placement for exploration at its 100% owned Cat-Euclid and Shatford Lake lithium projects in southeast Manitoba and its Clayton Valley and Fish Lake Valley, Nevada projects, as well as general working capital purposes.
The proceeds of the FT private placement will be used for exploration at ACME's 100% owned Cat-Euclid and Shatford Lake lithium projects in southeast Manitoba.
The company said it will pay a finder's fee in the amount of 7% of the proceeds of the FT private placement in cash to an arms' length party and will issue warrants entitling the holder to acquire such number of shares as is equal to 7% of the FT Units issued under the FT private placement at an exercise price of $1.50 per share for a period of two years from the date of issuance.
All securities that are issued under the private placement with be subject to, among other things, a hold period of four months and one day in accordance to applicable Canadian securities laws.
In Nevada, ACME is in the final process of permitting at its Clayton Valley lithium brine project for an upcoming drill program targeting prospective lithium brine targets as defined by recent geophysical work.
ACME holds 27 claims totaling approximately 11,803 acres strategically situated in the pegmatite fields of the Bird River Greenstone Belt (BRGB) in southeastern Manitoba, Canada. The northern and southern limbs of the Bird River Greenstone Belt contain at least 10 pegmatite fields and host hundreds of individual pegmatite bodies, of which many are classified as complex rare-element Lithium-Cesium-Tantalum (LCT) pegmatites.
Worldwide, LCT pegmatite deposits account for about one-fourth of the world's lithium production, most of the tantalum production, and all the cesium production. The world-class Tanco Mine, a lithium, cesium, and tantalum producer since 1968, is in the southern limb of the BRGB and neighbors ACME's Shatford Lake project to the north.
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