Where Will Arizona Lithium Allocate the Funds Raised from the Placement?
Arizona Lithium Limited
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Where Will Arizona Lithium Allocate the Funds Raised from the Placement?

Arizona Lithium Secures $16. 5 Million in Oversubscribed Placement for Prairie Lithium Project

Arizona Lithium Limited, a prominent player in North America’s lithium development sector, has successfully raised A$16. 5 million (C$14. 8 million) through a placement. This capital influx, garnered from institutional and sophisticated investors, was achieved at a price of A$0. 051 per share, marking a 30% premium over the closing price on December 13, 2023.

Strategic Use of Proceeds for Canadian Exploration

The raised funds, secured via a Flow Through Financing Placement, are earmarked for qualified Canadian Exploration Expenses (CEE).

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This strategic financing move aligns with the company’s focus on advancing its Prairie Lithium Project.

Funding Allocation and Project Timeline

The capital will facilitate drilling activities in 2024 at various locations within the Dawson Bay and Souris River Formations of the Prairie Project. Arizona Lithium intends to utilize existing funds to complete these wells in 2024, with the objective of commencing production in the first quarter of 2025.

Anticipated Preliminary Feasibility Study

A Preliminary Feasibility Study (PFS) for the Prairie Project is expected to be released by the end of 2023. This study will provide critical insights into the project’s viability and strategic direction.

Strengthening Shareholder Base

Navajo Transitional Energy Company LLC (NTEC) participated in the capital raising, marking their entry as shareholders in Arizona Lithium. This addition to the shareholder registry highlights the growing interest and confidence in the company's projects.

Solidifying Arizona Lithium’s Balance Sheet

The proceeds from the placement will significantly strengthen Arizona Lithium’s balance sheet, enabling the company to continue its work on the Prairie Project efficiently. The company plans to use the newly acquired funds, along with its existing resources, to progress through the exploration and development stages.

Optimism from the Managing Director

Paul Lloyd, the Managing Director of Arizona Lithium, expressed satisfaction with the successful completion of the placement. He attributed the oversubscribed placement to the strategic planning of the management team and Canadian government incentives. Lloyd anticipates releasing positive updates to shareholders, including the PFS, and is looking forward to a productive 2024 leading to production in early 2025.

A Promising Outlook for Arizona Lithium

Arizona Lithium's recent financial accomplishment marks a significant milestone in the advancement of the Prairie Lithium Project. With a strong balance sheet, government incentives, and a clear plan for exploration and development, the company is well-positioned to capitalize on the growing demand for lithium, a critical component in the burgeoning electric vehicle and renewable energy sectors. The successful placement and the involvement of entities like NTEC underscore the project's potential and the broader industry's confidence in Arizona Lithium’s strategic direction.

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