Green Technology Metals Offers 200 Million New Shares at 2 Cents to Raise $4 Million

Capital Raise Targets Seymour Lithium Project Development

Green Technology Metals (ASX:GT1) has kicked off a fully underwritten non-renounceable entitlement offer aiming to raise approximately $4 million at 2 cents per new share. Eligible shareholders can subscribe for 4 new shares for every 13 shares held as at the record date of 8 May 2026. This capital raise is designed to fund critical next steps for the company’s flagship Seymour Lithium Project in Ontario, Canada, including the completion of its Definitive Feasibility Study (DFS), permitting, regulatory approvals, and early site establishment.

The entitlement offer is complemented by a Top-Up Offer, allowing shareholders who fully subscribe to their entitlement to apply for additional shares, subject to scale-back at the directors’ discretion. The offer closes on 27 May 2026, with the Top-Up Offer closing a day later. The offer is fully underwritten by Yelverton Capital, Canaccord Genuity, and Foster Stockbroking, ensuring the company will secure the targeted funds regardless of shareholder take-up.

Placement Raises Additional $7 Million Pending Approval

In parallel, GT1 is conducting a two-tranche placement to raise up to $7 million through the issue of 350 million shares at the same 2-cent price. The first tranche of 80 million shares is being issued to institutional and sophisticated investors shortly after the record date without shareholder approval. The second tranche, comprising 270 million shares, including 8.5 million shares to directors John Young and Patrick Murphy, is subject to shareholder approval at a general meeting expected around 18 June 2026.

The placement shares will be issued after the entitlement record date and will not carry rights under the entitlement offer. Together, the entitlement offer and placement could raise up to $11 million (before costs), providing a significant capital injection to advance the Seymour project and strengthen the company’s balance sheet.

Use of Funds and Capital Structure Impact

GT1 plans to allocate the proceeds primarily towards the Seymour DFS and associated closure plan work streams ($630,000), permitting and Indigenous group consultations ($495,000), and re-establishment of the Seymour camp ($90,000). A substantial portion ($1.7 million) is earmarked for general working capital to support the expanded development team and project timeline towards a Final Investment Decision (FID). The remainder will cover creditor payments and offer costs.

The entitlement offer will issue approximately 200 million new shares, increasing the total shares on issue to over 1.2 billion when combined with the placement and existing securities. Shareholders who do not participate will face dilution, with examples showing a reduction in voting power by up to 40% relative to current holdings. The company confirms no shareholder will exceed 20% voting power post-offer, and the underwriting agreement includes safeguards to prevent control shifts.

Risks Highlighted Amid Funding and Development Uncertainties

The prospectus outlines a range of risks, including the need for further funding beyond this raise, typical exploration and development uncertainties, and going concern considerations. GT1’s half-year report for December 2025 flagged material uncertainty over its ability to continue as a going concern, although the board believes current funding will meet near-term commitments. Regulatory, environmental, and land access risks in Canada are also noted, alongside commodity price volatility and operational challenges common in lithium mining.

Eligible shareholders are urged to carefully consider these risks and consult professional advisers before participating. The company’s directors have committed to fully subscribe for their entitlements, signaling confidence in the raise.

Underwriting Agreement and Fees

The underwriting agreement with Yelverton, Canaccord, and Foster Stockbroking includes a management fee of 2% and an underwriting fee of 4% on amounts raised, plus the issue of nearly 63 million unquoted options to underwriters subject to shareholder approval. Termination events for the underwriting cover a range of market, regulatory, and company-specific triggers, including material adverse changes and lithium price declines.

GT1’s latest market price before the offer was 2.3 cents, close to the offer price, reflecting recent price pressures amid a recovering lithium market. The company’s capital raise follows recent announcements detailing progress on the Seymour DFS and permitting milestones, including a redesign that cuts the project footprint by 45%, which aims to reduce capital costs and improve project economics. These developments align with the company’s goal of reaching a FID and first ore production targeted for 2028.

Shareholders participating in the entitlement offer will find detailed instructions on payment methods, with the offer restricted to eligible shareholders in Australia and specified jurisdictions including New Zealand, Canada, the UK, and parts of Asia and Europe, reflecting regulatory compliance considerations.

Investors should note the offer is non-renounceable, meaning entitlements cannot be traded or sold, and any unexercised entitlements will be allocated under the Top-Up Offer or to the underwriters.

Green Technology Metals’ capital raising strategy and project advancement efforts will be closely watched as it seeks to navigate funding challenges and progress its lithium development ambitions.

These moves come on the heels of the company’s recent $11 million recapitalisation plan encompassing placement and entitlement offers, which was outlined in the company’s investor presentation earlier in May 2026, underscoring the urgency of securing funding to maintain momentum on the Seymour Lithium Project’s DFS and permitting phases. The project’s optimisation efforts, including footprint reduction and Indigenous engagement, are critical steps toward a mid-2026 investment decision.

GT1’s efforts to secure funding amid a volatile lithium price environment and regulatory complexities in Canada highlight the balancing act facing junior lithium miners as they transition from exploration to development.

Shareholders and market observers will be watching subscription levels and the eventual shareholder vote on the tranche 2 placement to gauge the company’s capital position and readiness to advance its flagship project.

Given the risks and dilution potential, the upcoming entitlement offer represents a pivotal moment for Green Technology Metals as it seeks to sustain its development trajectory in a competitive and capital-intensive sector.

GT1 investor presentation and Seymour DFS redesign cuts footprint provide recent context for the company’s strategic and operational progress.