14/03/2025 10:28:52
Green Technology Metals (GT1) has announced a non-renounceable entitlement offer to raise approximately A$4 million before costs, aimed at bolstering its lithium projects in Ontario, Canada. The offer, priced at $0.04 per new share, is partially underwritten to $3.0 million, with support from directors, long-term shareholders, and institutional investors, signalling strong confidence in the company’s strategy. Participants will also receive one free unquoted option for every four new shares subscribed.
The raised capital is earmarked for several key initiatives. A significant portion will fund project development activities at the Seymour Lithium Project, including a Definitive Feasibility Study (DFS), permitting processes, and ongoing Indigenous consultation. Funds will also advance the Pre-Feasibility Study (PFS) for the Thunder Bay lithium conversion facility and will cover general working capital and offer costs.
Canaccord Genuity and Bell Potter Securities have been appointed as joint lead managers and underwriters for the Entitlement Offer. In addition to underwriting, directors John Young, Cameron Henry, and Patrick Murphy are participating as sub-underwriters.
The Entitlement Offer is available to eligible shareholders on a 1 for 3.85 pro-rata basis, with the record date set for March 21, 2025. Eligible shareholders can also apply for additional shares not subscribed for under the initial offer. Shares not taken up will be allocated to the Underwriters.
The Underwriters will receive a fee equal to 6% of the gross amount raised, alongside unquoted options subject to shareholder approval. Termination events for the underwriting agreement include material adverse changes, ASX listing issues, insolvency, and significant market or lithium price falls. Related party sub-underwriters will receive a 3% cash fee and sub-underwriting options, also pending shareholder approval. The indicative timetable outlines key dates, with the offer closing on April 15, 2025, and new shares expected to be quoted on April 28, 2025. This funding positions GT1 to accelerate its development plans and potentially become a pre-eminent vertically integrated lithium business in Ontario.