GT1 Entitlement Offer Raises $1.87M of $4M Target at $0.02 per Share

Entitlement Offer Raises $1.87 Million Amid $2.13 Million Shortfall

Green Technology Metals (ASX:GT1) has completed a fully underwritten entitlement offer aimed at raising approximately $4 million, but only secured $1.87 million from shareholders. The shortfall of $2.13 million, representing over 106 million new shares, will be taken up by the underwriters Yelverton Capital, Canaccord Genuity, and Foster Stockbroking. The new shares are priced at a modest $0.02 each, reflecting the company’s current capital-raising environment.

Capital Raise Supports Lithium Project Development in Ontario

This raise is part of Green Technology Metals’ broader funding strategy to advance its vertically integrated lithium business in Ontario, Canada. The company plans to issue 200.24 million new shares on 3 June 2026, with trading expected to start the following day. The funds are intended to support the ongoing Definitive Feasibility Study (DFS) and permitting activities for the Seymour Lithium Project, which has seen significant development and optimisation efforts over recent months.

The entitlement offer was structured at a ratio of 4 new shares for every 13 held, with eligible shareholders also given the opportunity to apply for additional shares under a Top-Up Offer. However, the uptake fell short of the target, necessitating the underwriters’ intervention to fully subscribe the shortfall shares. This dynamic aligns with the company’s recent capital raising activities, including an $11 million recapitalisation effort to fund Seymour DFS and permitting workstreams, as well as the integration of new critical mineral processing streams such as tantalum and rubidium.

Underwriting Ensures Funding Continuity

The underwriting arrangement provides certainty of funding, a crucial factor given the company’s tight cash position reported earlier in the year. Green Technology Metals’ cash on hand had been reported as low as A$509,000 in late April, highlighting the urgency of securing capital to maintain project momentum. The involvement of established underwriters mitigates the risk of a failed raise and supports the company’s strategic timeline, which targets first ore production in the first half of 2028.

The capital raise is closely linked to the company’s efforts to optimise the Seymour project, including a 45% reduction in project footprint and cost-saving redesigns in the DFS. These initiatives are designed to improve project economics amid a recovering lithium price environment, with spodumene prices surpassing US$2,200 per tonne, according to recent market data.

Green Technology Metals’ management, led by Managing Director Cameron Henry, has emphasised the importance of this funding round in sustaining the company’s development trajectory and positioning it as a leading lithium producer in Ontario. The company’s next steps include finalising DFS outcomes and advancing permitting processes, which remain critical milestones for investor confidence and project financing.