Li-FT Power Launches 6.9 Million Share Offering at $2.90 with Over-Allotment Option
Li-FT Power Ltd. is raising $20 million through a common share offering priced at $2.90 each, primarily to cover care and maintenance costs for its Renard diamond mine option and support corporate activities. The deal includes a 15% over-allotment option and has conditional TSXV approval.
- 6.9 million shares offered at $2.90 each
- Up to 1.035 million additional shares via over-allotment
- Funds to cover Renard option care and maintenance
- Recent acquisition of Winsome Resources expands lithium portfolio
- Renard Option subject to regulatory and court approvals
Capital Raise Targets Renard Mine Care and Maintenance
Li-FT Power Ltd. (ASX:LFT) is undertaking a $20 million CAD public offering of 6.9 million common shares at $2.90 each, with an option for underwriters to purchase an additional 1.035 million shares. The proceeds, net of fees and expenses, will primarily fund the initial care and maintenance (C&M) payment for the Renard diamond mine option agreement, a pivotal element in the company’s strategic expansion, alongside general corporate purposes.
The Renard Option Agreement grants Li-FT an exclusive two-year period to acquire the Renard diamond mine assets or its owning entities, subject to Superior Court of Québec approval and final TSXV listing consent. The option fee of $12 million CAD has been paid and is held in trust pending regulatory clearance to postpone rehabilitation work at Renard. Should these conditions not be met by the October 3, 2026 deadline, the option will terminate and fees refunded.
Winsome Combination Bolsters Lithium Project Portfolio
Earlier this year, Li-FT completed a transformational combination with Winsome Resources Limited, acquiring a 75% interest in the Galinée property and consolidating it with the adjacent Adina property into the Adina-Galinée Lithium Project. This combined project now spans 37,935 hectares with an indicated mineral resource estimate for the Adina property of 60.5 million tonnes at 1.14% Li2O, plus inferred resources of 15.9 million tonnes at 1.17% Li2O, underpinning the company’s lithium ambitions.
The company has launched an aggressive 2026 exploration program, including 163 diamond drill holes totalling approximately 39,000 metres, surface till sampling, and geological mapping aimed at expanding and upgrading the resource base. The Adina-Galinée Technical Report, filed in May 2026, supports these activities and provides a robust framework for advancing toward feasibility.
Renard Option Integral to Processing Strategy
Renard’s existing infrastructure; a 2.2 million tonnes per annum processing plant, airport, power station, and camp facilities; offers Li-FT a potential shortcut to lithium processing capability. The company plans to assess repurposing Renard for spodumene concentrate production, aiming to complete a feasibility study by the end of 2027. However, the exercise of the option remains conditional on multiple factors including negotiated acquisition terms, court approval, regulatory consents, and financial guarantees.
During the option period, Li-FT is responsible for all C&M costs at Renard, with an estimated $18 million CAD required annually. The current offering’s net proceeds will cover the first year’s C&M payment, with the second year’s funding subject to future financing. Failure to secure such funding could jeopardize the option’s continuation.
Market Listings and Underwriting
The company’s common shares trade on the TSXV (ticker: LIFT), OTCQX (LIFFF), Frankfurt Exchange (WS0), and as CHESS Depositary Interests on the ASX (LFT). The offering is underwritten by Canaccord Genuity Corp. as lead underwriter, alongside BMO Nesbitt Burns, Raymond James, ATB Capital Markets, and SCP Resource Finance. Conditional TSXV approval for listing the offered shares has been granted, pending fulfillment of listing requirements.
Underwriters may stabilize the market price through over-allotments and market transactions, with fees set at 5% of gross proceeds, reduced to 2.5% for certain purchasers. The offering is not registered in the United States and is being sold under applicable exemptions.
Risks and Forward-Looking Uncertainties
Investors should note the speculative nature of Li-FT’s business, with no current commercial production and ongoing negative cash flow. The Renard Option’s ultimate exercise is uncertain, hinging on regulatory approvals, financing availability, and successful integration of acquired assets. Additional capital will likely be required beyond this offering to meet exploration and operational goals.
Market volatility, title risks, environmental liabilities, and the company’s ability to execute its lithium development strategy remain key risks. The company does not anticipate paying dividends in the near term.
Li-FT’s next milestones include the closing of this offering expected around mid-August 2026, progress on Renard’s regulatory approvals, ongoing exploration results from the Adina-Galinée Lithium Project, and the advancement of feasibility studies incorporating Renard’s processing facilities.
Bottom Line?
Li-FT Power’s $20 million raise is a critical step to fund Renard’s care and maintenance while advancing its lithium projects, but the path to exercising the Renard Option remains contingent on multiple approvals and future financing.
Questions in the middle?
- Will Li-FT secure final TSXV approval and meet Renard’s release condition by the October deadline?
- How will exploration results from the Adina-Galinée Project influence the upcoming feasibility study?
- What financing strategies will Li-FT deploy to fund the second year of Renard’s care and maintenance costs?
