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Snow Lake Energy (NASDAQ: LITM) has announced the pricing of a best-efforts public offering of 18,750,000 common shares at US$0.80 per share, aiming to raise approximately US$15 million in gross proceeds. The offering is expected to close on December 31, 2024, with ThinkEquity acting as sole placement agent.
The company plans to use the net proceeds for working capital and general corporate purposes. The securities will be offered through a shelf registration statement on Form F-3. Snow Lake Energy is a Canadian clean energy exploration company with a portfolio including two uranium projects (Black Lake and Engo Valley) and two lithium projects (Shatford Lake and Snow Lake), with current focus on advancing uranium exploration while limiting lithium activities due to market conditions.
Snow Lake Energy (NASDAQ: LITM) ha annunciato il prezzo di un’offerta pubblica a migliori sforzi di 18.750.000 azioni ordinarie a 0,80 USD per azione, con l’obiettivo di raccogliere circa 15 milioni di USD in proventi lordi. Si prevede che l’offerta si chiuderà il 31 dicembre 2024, con ThinkEquity che agirà come unico agente di collocamento.
L’azienda prevede di utilizzare i proventi netti per il capitale circolante e scopi aziendali generali. I titoli saranno offerti tramite una dichiarazione di registrazione di shelf sul modulo F-3. Snow Lake Energy è una società canadese di esplorazione di energia pulita con un portafoglio che include due progetti di uranio (Black Lake e Engo Valley) e due progetti di litio (Shatford Lake e Snow Lake), con attuale attenzione sull’avanzamento dell’esplorazione di uranio, limitando le attività relative al litio a causa delle condizioni di mercato.
Snow Lake Energy (NASDAQ: LITM) ha anunciado el precio de una oferta pública de mejores esfuerzos de 18.750.000 acciones ordinarias a 0,80 USD cada una, con el objetivo de recaudar aproximadamente 15 millones de USD en ingresos brutos. Se espera que la oferta se cierre el 31 de diciembre de 2024, con ThinkEquity actuando como único agente de colocación.
La compañía planea usar los ingresos netos para capital de trabajo y fines corporativos generales. Los valores se ofrecerán a través de una declaración de registro de estantería en el Formulario F-3. Snow Lake Energy es una empresa canadiense de exploración de energía limpia con un portafolio que incluye dos proyectos de uranio (Black Lake y Engo Valley) y dos proyectos de litio (Shatford Lake y Snow Lake), con enfoque actual en avanzar la exploración de uranio mientras limita las actividades de litio debido a las condiciones del mercado.
스노우 레이크 에너지 (NASDAQ: LITM)는 18,750,000주의 보통주를 주당 0.80 USD에 판매하는 공개 제안을 발표했으며, 약 1,500만 달러의 총 수익을 올릴 계획입니다. 이 제안은 2024년 12월 31일에 마감될 것으로 예상되며, ThinkEquity가 단독 배치 에이전트로 활동합니다.
회사는 순수익을 운영 자본 및 일반 기업 용도로 사용할 계획입니다. 증권은 F-3 양식의 선반 등록 성명을 통해 제공됩니다. 스노우 레이크 에너지는 두 개의 우라늄 프로젝트(블랙 레이크 및 엔고 밸리)와 두 개의 리튬 프로젝트(샤트포드 레이크 및 스노우 레이크)가 포함된 포트폴리오를 가진 캐나다의 청정 에너지 탐사 회사로, 현재는 시장 상황을 고려하여 리튬 활동을 제한하면서 우라늄 탐사를 진행하는 데 중점을 두고 있습니다.
Snow Lake Energy (NASDAQ: LITM) a annoncé le prix d’une offre publique à meilleur effort de 18.750.000 actions ordinaires à 0,80 USD par action, visant à lever environ 15 millions de USD en produits bruts. L’offre devrait se clore le 31 décembre 2024, avec ThinkEquity agissant en tant qu’unique agent de placement.
L’entreprise prévoit d’utiliser les produits nets pour le fonds de roulement et des fins d’entreprise générales. Les titres seront offerts par le biais d’une déclaration d’enregistrement en tant que formulaire F-3. Snow Lake Energy est une entreprise canadienne d’exploration des énergies propres avec un portefeuille comprenant deux projets d’uranium (Black Lake et Engo Valley) et deux projets de lithium (Shatford Lake et Snow Lake), avec un accent actuel sur l’avancement de l’exploration de l’uranium tout en limitant les activités de lithium en raison des conditions du marché.
Snow Lake Energy (NASDAQ: LITM) hat den Preis für ein öffentliches Angebot auf Best-Efforts-Basis von 18.750.000 Stammaktien zu je 0,80 USD bekannt gegeben, mit dem Ziel, ca. 15 Millionen USD an Bruttoerlösen zu erzielen. Das Angebot wird voraussichtlich am 31. Dezember 2024 abgeschlossen, wobei ThinkEquity als alleiniger Platzierungsagent fungiert.
Das Unternehmen plant, die Nettoprovenienzen für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die Wertpapiere werden über eine Registrierungsanmeldung auf dem Formular F-3 angeboten. Snow Lake Energy ist ein kanadisches Unternehmen für saubere Energieerforschung mit einem Portfolio, das zwei Uranprojekte (Black Lake und Engo Valley) und zwei Lithiumprojekte (Shatford Lake und Snow Lake) umfasst, wobei der derzeitige Fokus auf der Förderung der Uranexploration liegt, während die Lithiumaktivitäten aufgrund der Marktbedingungen eingeschränkt werden.
Positive
- Secured US$15 million in funding through public offering
- Strategic shift to focus on uranium projects amid clean energy transition
Negative
- Significant shareholder dilution through 18.75 million new shares
- lithium exploration due to depressed market conditions
- Offering price of $0.80 per share indicates relatively low valuation
Insights
The $15M public offering at $0.80 per share represents significant dilution, with the 18.75M new shares increasing the float substantially. At a market cap of $45.7M, this offering represents about 33% dilution to existing shareholders. The pricing at $0.80 reflects a discount to recent trading levels, which is typical for secondary offerings but puts downward pressure on the stock price. The timing aligns with increased interest in uranium exploration companies due to rising uranium prices, though Snow Lake’s pivot from lithium to uranium exploration signals challenges in the lithium market. The company’s dual focus on uranium projects in Saskatchewan and Namibia, while maintaining lithium assets, suggests a strategic repositioning rather than a complete pivot. The use of proceeds for “working capital and general corporate purposes” is notably vague, which may concern investors looking for specific development plans.
The strategic shift from lithium to uranium exploration reflects broader market dynamics, with uranium prices reaching multi-year highs while lithium faces oversupply concerns. The Black Lake project in Saskatchewan’s Athabasca Basin is particularly noteworthy, as this region produces some of the highest-grade uranium deposits globally. However, early-stage exploration in the Athabasca Basin requires significant capital due to deep targets and challenging geology. The Engo Valley project in Namibia adds geographical diversification but also operational complexity. The company’s decision to maintain but limit lithium exploration activities is prudent given current market conditions, though it raises questions about the long-term viability of their lithium assets. The size of this capital raise suggests initial exploration programs rather than advanced development, indicating a lengthy timeline before potential resource definition.
Winnipeg, Manitoba–(Newsfile Corp. – December 29, 2024) – Snow Lake Resources Ltd., d/b/a Snow Lake Energy (NASDAQ: LITM) (“Snow Lake” or the “Company“), a uranium exploration company, today announced the pricing of a best-efforts public offering of 18,750,000 common shares at a public offering price of US$0.80 per share. All of the shares in the offering are being offered by the Company. Total gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately US$15,000,000. The offering is expected to close on December 31, 2024, subject to satisfaction of customary closing conditions.
The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
ThinkEquity is acting as sole placement agent for the offering.
The securities will be offered and sold pursuant to a shelf registration statement on Form F-3 (File No. 333-272324), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 1, 2023 and declared effective on August 9, 2023. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Snow Lake Resources Ltd.
Snow Lake Resources Ltd., d/b/a Snow Lake Energy, is a Canadian clean energy exploration company listed on (NASDAQ: LITM), with a global portfolio of clean energy mineral projects comprised of two uranium projects and two hard rock lithium projects. The Black Lake Uranium Project is an exploration stage project located in the Athabasca Basin, Saskatchewan and the Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia. The Shatford Lake Project is an exploration stage project located adjacent to the Tanco tantalum, cesium, and lithium mine in Southern Manitoba, and the Snow Lake Lithium™ Project is an exploration stage project located in the Snow Lake region of Northern Manitoba.
The current focus of Snow Lake is advancing the exploration of its two uranium projects to supply the raw materials needed for the clean energy transition and emissions free power, while exploration activities on its two lithium projects will remain limited until such time as the lithium market recovers from its current depressed levels. Learn more at www.snowlakeenergy.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation statements with regard to Snow Lake Resources Ltd.. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Snow Lake Resources Ltd.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Some of these risks and uncertainties are described more fully in the section titled “Risk Factors” in our registration statements and annual reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Snow Lake Resources Ltd. undertakes no duty to update such information except as required under applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235467
FAQ
How much money is Snow Lake Energy (LITM) raising in its December 2024 public offering?
Snow Lake Energy is raising approximately US$15 million through a public offering of 18,750,000 common shares priced at US$0.80 per share.
What will Snow Lake Energy (LITM) use the proceeds from its 2024 public offering for?
The company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
How many shares is LITM offering in its December 2024 public offering?
Snow Lake Energy is offering 18,750,000 common shares in its December 2024 public offering.
Why is Snow Lake Energy (LITM) limiting its lithium exploration activities?
Snow Lake Energy is limiting its lithium exploration activities due to currently depressed lithium market conditions, focusing instead on uranium projects.
When is LITM’s public offering expected to close?
The public offering is expected to close on December 31, 2024, subject to satisfaction of customary closing conditions.
