Pure Energy Minerals Ltd. will undertake a private placement to raise up to C$6 million, it said Dec. 14.
Canaccord Genuity Corp. will act as the lead agent and sole book runner on a commercially reasonable efforts basis for a syndicate of including Red Cloud Klondike Strike Inc. and Beacon Securities Ltd.
The company will issue 15 million units at 40 cents apiece. Each unit will comprise 1 common share and a share purchase warrant, with each whole warrant exercisable at 55 cents for a period of 36 months from closing, subject to an acceleration provision.
Additionally, the company will grant the agents an overallotment option to purchase a maximum of 15% additional units of the total units issued at the closing. The option is exercisable at any time up to 48 hours prior to the closing.
Pure Energy intends to use the proceeds to advance the Clayton Valley lithium project in Nevada and the Terra Cotta lithium brine project in Argentina, as well as for general corporate purposes.
The closing of the financing may occur in one or more tranches.