Leading Edge Materials Corp. has closed the first tranche of its previously announced private placement, issuing 16,032,000 common shares at a price of $0.25 per share for gross proceeds of CAD$4,008,000.

The financing forms part of a unit private placement where each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share at a price of C$0.40 until the expiry date two years from the closing date. The company’s cornerstone shareholder, Mr. Eric Krafft, has agreed to subscribe for any units not otherwise purchased by investors under the private placement.

Net proceeds from the offering will be directed toward advancing the company's projects in Sweden and Romania, alongside general working capital and corporate purposes. Specifically, funds will support Pre-Feasibility Study workstreams and environmental permitting for the Norra Kärr Heavy Rare Earth Elements Project. That work follows the recent award of a 25-year mining lease for the deposit.

Proceeds will also support studies related to a possible restart of the Woxna Graphite mine and processing facility in Sweden. The company holds the site as a fully constructed and permitted asset, with proceeds supporting restart evaluations. Meanwhile, Leading Edge Materials continues to seek alternative capital to fund Romanian exploration activities, where on-the-ground work remains focused on defining promising polymetallic targets.

The company is advancing domain sampling to generate eudialyte concentrate as feedstock for upcoming hydrometallurgical pilot testing at Norra Kärr. Through these asset developments, the company aims to position the project to contribute directly to the European Union Critical Raw Materials Act target of sourcing 10% of strategic raw material consumption domestically by 2030.

A 6% finder’s fee was paid to an arm’s length third party on a portion of the placement. The securities issued under the first tranche are subject to statutory resale restrictions, including a hold period expiring on December 19, 2026. Closing of the offering remains subject to customary conditions, including receipt of all necessary regulatory approvals and the approval of the TSX Venture Exchange.

Read the full announcement: LEADING EDGE MATERIALS CLOSES FIRST TRANCHE OF C$ 6,000,000 PRIVATE PLACEMENT WITH BINDING STANDBY SUBSCRIPTION AND COMMITMENT OF CORNERSTONE SHAREHOLDER