Rapid Lithium’s $2M Capital Raise Fuels US Lithium Drilling and Canadian Germanium Acquisition

• Completed $2 million partially underwritten entitlement offer in December 2024
• Renegotiated Ingersoll Project acquisition terms and relinquished Mateen Project interest in the US
• Executed share purchase agreement for Prophet River Project in Canada targeting germanium and gallium
• Recorded AUD 11.5 million impairment on Gabon assets to focus on US and Canadian operations
• Exploration expenditure of AUD 114,000 for the quarter with no production activities

Capital Raising and Corporate Developments

Rapid Lithium Ltd (ASX: RLL) successfully completed a partially underwritten pro-rata non-renounceable entitlement offer in the December quarter 2024, raising approximately $2 million before costs. The capital raise was aimed primarily at funding exploration activities across its US lithium projects, with any surplus allocated to working capital. The entitlement offer included attaching free options exercisable at $0.017, expiring in October 2027, which were listed on the ASX in March 2025 under the code RLLO.

The company’s 2025 Annual General Meeting is scheduled for 28 May 2025, where shareholder approval will be sought for key acquisitions and corporate matters.

US Project Updates: Ingersoll and Mateen

During the quarter, Rapid Lithium renegotiated the payment terms for the Ingersoll Project, part of its 2024 Midwest Lithium acquisition. The revised agreement includes staged payments totaling USD 330,000, with initial payments enabling the company to commence drilling activities. The company retains the option to proceed with further payments based on assay results, or terminate the contract without further obligations.

Simultaneously, Rapid Lithium relinquished its interest in the Mateen Project, also acquired through Midwest Lithium, deeming it non-material to its future program. No fieldwork was conducted on the US lithium assets during the quarter due to weather constraints, but plans are underway for structural mapping, rock sampling, and a 1,000-meter diamond drilling program on fully permitted land.

Strategic Canadian Acquisition: Prophet River Project

Subsequent to the quarter’s end, Rapid Lithium executed a share purchase agreement to acquire mineral claims comprising the Prophet River Project in British Columbia, Canada. This acquisition targets germanium and gallium, critical metals with rising strategic importance due to China’s recent export bans to the US. The project covers 2,110 hectares of prospective ground with historic drill holes and bulk samples showing promising zinc, gallium, and germanium grades.

Rapid Lithium’s Managing Director, Martin Holland, highlighted the timing of the acquisition as pivotal given China’s dominant global supply position and the increasing demand for these metals in high-tech applications such as semiconductors, solar cells, and fiber optics.

Zimbabwe and Gabon: Exploration and Impairment

In Zimbabwe, Rapid Lithium holds an 80% interest in the Bend Nickel Project, focusing on komatiite-style nickel deposits. Exploration activities during the quarter were limited, with plans for dual-target drilling and geophysical surveys to expand known mineralised zones.

Conversely, the company recorded an AUD 11.5 million impairment on its Gabon assets, reflecting a strategic decision to wind down operations there and concentrate resources on its US and Canadian projects. The Gabon exploration permit remains valid until November 2025, but no further work is planned.

Financial Position and Outlook

Rapid Lithium reported exploration expenditure of AUD 114,000 for the quarter, primarily in the US and Zimbabwe. No production activities were undertaken. The company ended the quarter with cash and equivalents of AUD 955,000 and has access to financing facilities totaling AUD 604,000. Net cash used in operating and investing activities was AUD 831,000, with net cash inflows from financing activities of AUD 1.6 million.

The company confirmed it has sufficient funding to support operations for over one quarter and is considering additional capital raising, including a $150,000 commitment from Strata Holding Investment, subject to shareholder approval at the upcoming AGM.

Looking ahead, Rapid Lithium’s focus remains on advancing its US lithium projects through drilling and evaluation, progressing the Canadian Prophet River acquisition and exploration, and selectively developing its Zimbabwe nickel assets, while managing its capital prudently amid evolving market conditions.

Bottom Line?

Rapid Lithium’s strategic pivot towards US and Canadian critical minerals assets positions it well amid shifting global supply chains, but upcoming assay results and shareholder approvals will be key near-term catalysts.

Questions in the middle?

• Will assay results from the Ingersoll Project drilling justify further acquisition payments and development?
• How will Rapid Lithium’s Canadian acquisition impact its exposure to strategic metals amid China’s export restrictions?
• What are the company’s plans to replace or supplement funding beyond the current financing facilities?