ACME Lithium Inc said it has closed its previously-announced oversubscribed, non-brokered private placement financing, raising gross proceeds of C$4.45 million.
The explorer said proceeds from the offering will be used for exploration at its Cat-Euclid and Shatford Lake lithium projects in Manitoba and Clayton Valley and Fish Lake Valley projects in Nevada, as well as for general working capital purposes.
ACME said as a result of the funding, its working capital is about C$10.95 million with no debt.
READ: ACME Lithium inks binding term sheet for a non-brokered private placement for aggregate gross proceeds of C$3,200,580.00
The company noted that the private placement involved the issuance of 3,194,976 ACME Lithium units, at a price of C$1.08 per unit, for gross proceeds of C$3,450,574.
Each unit was comprised of one common share plus one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of C$1.40 per share for three years.
The company also said it issued 666,668 ACME Lithium flow-through (FT) units, at a price of C$1.50 per FT unit, for gross proceeds of C$1,000,002.
Each FT unit consisted of one flow-through common share plus one-half of one non-flow through common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of C$1.80 per share for two years.
ACME added that it paid finder's fees of C$87,500 cash, 46,667 compensation warrants exercisable for two years at $1.80 per warrant, and 16,204 compensation warrants exercisable for three years at $1.08 per warrant.
The company said all securities issued as part of 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.
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, southeast Oregon and in southeastern Manitoba.
Contact Sean at sean@proactiveinvestors.com