Highlights

• Loyal Lithium, earlier known as Monger Gold, is committed to advancing its lithium project portfolio in tier 1 jurisdictions of North America.
• The Company received strong demand for its AU$4.5 million placement meant to expedite lithium exploration.
• The strong reception by domestic and international investors speaks volumes about their interest in the Company’s lithium portfolio.
• The Company believes that it is well-capitalised to maintain momentum across its portfolio of lithium assets.

Loyal Lithium Limited (ASX:LLI), earlier known as Monger Gold Ltd (ASX:MMG), is committed to advancing its portfolio of lithium assets located in the tier-1 mining jurisdictions of Canada and the United States.

The Company recently launched a capital raising program, which received strong support from new as well as existing investors. Institutional, sophisticated, and professional investors both domestic and offshore made firm commitments for the Company’s two‑tranche placement, designed to raise AU$4.5 million (before costs). The Company plans to issue fully paid ordinary shares at a price of AU$0.40 apiece. Read on to know more about the placement.

Strong demand indicates significant interest in Loyal’s lithium portfolio

The strongly supported placement signifies significant interest in the Company’s portfolio of lithium assets sitting within the tier-1 mining jurisdictions of Canada and the United States, highlights the Company update.

The lead manager to the placement was Canaccord Genuity (Australia) Limited.

The funds raised will be directed towards expediting the Company’s lithium exploration endeavours including

1. Exploration field works at the Brisk Lithium Project and the Trieste Lithium Project
2. Potential additional acquisitions
3. Drilling at the Scotty Lithium Project
4. General working capital

Details of the two-tranche placement

The placement will be issued in the following two tranches:

1. Tranche One Placement: Issue of a total of 5.5 million new shares at an offer price of AU$0.40 per new share in order to raise a total of AU$2.2 million (before costs).
2. Tranche Two Placement: Subject to shareholder approval, the Company will issue a total of 5.75 million new shares at an offer price of AU$0.40 per new share, raising AU$2.3 million (before costs).

Completion of the ‘Tranche Two Placement’ is subject to shareholder approval, which will be sought at an extraordinary general meeting supposed to be held in early December 2022.

Maths of the issue price of new shares

The issue price of AU$0.40 per new share signifies a discount of 16.7% to the closing price of the Company shares on 20 October 2022 and a discount of 7.5% to the 15-day volume-weighted average price.

About the Company

Loyal Lithium has a lithium project portfolio covering all lithium resource types within tier 1 mining jurisdictions in North America.   

• Hard Rock – Trieste Lithium Project: The project in the James Bay Lithium District of Quebec has prospective nature for hosting hard-rock, pegmatite-hosted lithium mineralisation. The large-scale lithium project contains multiple mapped pegmatites, and favourable indicator mineralogy including an anomalous lithium assay result. The project is also in close proximity to Winsome Resources’ (ASX:WR1) Adina lithium project, which has recently recorded a large pegmatite intercept and high-grade lithium assay results of up to 4.89% Li₂
• Hard Rock – Brisk Lithium Project: The project lies within the James Bay lithium district, Quebec, Canada. The project, boasting six prospects and covering an area of 98.5km², is host to several known pegmatite outcrops.
• Brines and Sediment – Scotty Lithium Project: The project lies in Nevada, USA, with the dual prospects of brine and sediment. The project is in proximity to the Bonnie Claire lithium deposit, which is one of the largest lithium resources in the US.

Loyal Lithium says they have a clear strategic plan which has seen them seemly transition and create value for shareholders. The Company has the aim to delineate JORC-compliant resources via systematic exploration at its projects.

LLI shares traded at AU$0.610 on 8 November 2022.

To know more about the Company, click here