Li-FT Power Ltd. has secured a C$20 million bought deal public offering priced at C$2.90 per share, aimed at funding care and maintenance for the Renard option period and general working capital. The deal includes a 15% over-allotment option and anticipates participation from cornerstone investor Avenir Minerals.
- C$20 million bought deal public offering at C$2.90 per share
- 15% over-allotment option granted to underwriters
- Proceeds to fund Renard option care and maintenance and working capital
- Offering expected to close mid-August pending TSXV approval
- Avenir Minerals anticipated to participate under investor rights agreement
Capital Raise Targets Renard Option Care Costs
Li-FT Power Ltd (ASX:LFT) has announced a C$20 million bought deal public offering, issuing 6.9 million common shares at C$2.90 each. The raise is designed to bankroll the company’s estimated care and maintenance expenses for the first year of its Renard option period, alongside general working capital needs. This move comes as Li-FT Power advances its strategy to repurpose the Renard diamond mine site for lithium production, a project that requires ongoing operational funding while feasibility studies proceed.
Underwriters Granted Over-Allotment Option
The offering, led by Canaccord Genuity Corp. and a syndicate of underwriters, includes a 15% over-allotment option exercisable within 30 days post-closing. This provision allows the underwriters to purchase up to an additional 1.035 million shares at the same price, potentially boosting the gross proceeds beyond the initial C$20 million. The transaction is subject to customary closing conditions, notably conditional acceptance by the TSX Venture Exchange (TSXV), with the deal expected to close around August 12, 2026.
Avenir Minerals’ Anticipated Participation
Li-FT Power’s investor rights agreement with Avenir Minerals Limited means the latter holds participation rights in equity financings such as this. While the company anticipates Avenir’s involvement in the offering, it stops short of a firm commitment. Avenir’s participation would reinforce confidence in the raise, given its existing stake and strategic interest in Li-FT’s lithium projects.
Offering Scope and Regulatory Compliance
The shares will be offered publicly across Canada, excluding Québec, and via private placements to qualified institutional buyers in the United States under Rule 144A exemptions. The offering also extends to other jurisdictions, including Australia, leveraging relevant securities law exemptions. The allotment falls within Li-FT’s 15% placement capacity under ASX Listing Rule 7.1, ensuring compliance with exchange rules. This cross-border approach reflects Li-FT’s dual listing and international investor base.
Funding Strategy Amid Renard Acquisition Plans
This capital raise aligns with Li-FT Power’s recent securing of an exclusive two-year option to acquire the Renard diamond mine site, a move that could significantly accelerate its lithium ambitions by repurposing existing infrastructure. The company is responsible for ongoing care and maintenance costs estimated at C$18 million annually during the option period, highlighting the importance of this funding round to maintain project viability while exploring lithium processing feasibility. The raise provides a financial bridge as Li-FT advances its development pipeline, including the Adina-Galinée and Yellowknife lithium projects.
Bottom Line?
Li-FT’s C$20 million raise is a crucial step to sustain its Renard option commitments, but final regulatory approvals and Avenir’s participation remain key variables to watch.
Questions in the middle?
- Will Avenir Minerals fully participate in the offering as anticipated?
- How will the net proceeds be allocated between Renard care costs and other working capital demands?
- What are the next regulatory hurdles for the Renard acquisition and how might they impact project timelines?