Premier1 Lithium Offers Shares at 50% Discount to Raise $1.84 Million

Capital Raise Details

Premier1 Lithium (ASX, PLC) has launched a partially underwritten renounceable entitlement offer to raise approximately $1.84 million. The offer is priced at $0.005 per new share, representing a significant 50% discount to the company’s last closing price of $0.010 on 7 October 2025. Eligible shareholders can subscribe for one new share for every existing share held, along with one option for every two new shares subscribed, exercisable at $0.015 within 36 months.

The entitlement offer is underwritten by Mahe Capital Ltd Pty, which has committed to support the raise with associated fees and options issued to the underwriter. The offer is open to shareholders in Australia, New Zealand, and Germany and is expected to close on 30 October 2025.

Strategic Use of Funds

The funds raised will be directed primarily towards advancing exploration and drilling activities at Premier1’s key projects in Western Australia. This includes resource drilling at the Yalgoo Project, particularly at the Wadgingarra deposit and the Mt Kersey prospect, aiming to expand and test highly prospective mineral targets. Additionally, initial exploration drilling will be conducted at the Abbotts North Project, focusing on gold-in-soil anomalies and untested targets within the northern Abbotts Greenstone Belt.

Complementing the drilling programs, the company will undertake heritage surveys and geophysical programs at both project sites to facilitate ongoing exploration campaigns. A portion of the funds will also cover general working capital and the costs associated with the entitlement offer.

Corporate Rebranding and Outlook

In a notable strategic move, Premier1 Lithium intends to rebrand as Erebus Resources Limited, subject to shareholder approval at the upcoming annual general meeting in November 2025. This name change reflects a pivot from a dedicated lithium explorer to a broader mineral exploration focus, potentially signaling an expanded resource strategy beyond lithium.

Managing Director Jason Froud emphasized the company’s commitment to strengthening its exploration position, particularly at Abbotts North, and advancing drilling at Yalgoo. He acknowledged the support from Mahe Capital as instrumental in progressing Premier1’s growth strategy.

With the entitlement offer underway, the company is poised to accelerate its exploration activities, which could unlock further value for shareholders if drilling results meet expectations. However, the success of the capital raise and subsequent exploration outcomes remain key factors to watch.