Li-FT Power (CSE: LIFT) is raising C$30 million for exploration at its Yellowknife lithium project about 120 km north of the city of Yellowknife, NWT.
Canaccord Genuity is leading a syndicate of investors making a “best efforts” private placement of approximately 2.2 million flow-through shares at a price of C$13.45 per share. The agents have an overallotment option that could raise an additional C$5 million.
The gross proceeds of the offering will be used for exploration purposes at the company’s lithium property which covers the majority of the Yellowknife pegmatite province, believed to be one of the largest hard rock lithium resources in the Western World. Outcrops can be seen in satellite imagery, says Li-FT, and can be traced over a strike length of 1,800 metres.
Lithium mineralization hosted in spodumene-bearing pegmatites of the Yellowknife province were first discovered in the 1940s and explored intermittently through the 1980s. A non-43-101-compliant resource of 49 million tonnes averaging 1.40% lithium oxide (LiO2) was calculated in the late 1970s.
Li-FT released a 43-101 technical report on the property late last year, but no new estimate of resources or reserves was made. Li-FT acquired the Yellowknife lithium project last year.