Rock Tech Lithium Inc. has closed the first tranche of a non-brokered, fully subscribed private placement, issuing 2,923,147 units at a price of $0.65 per unit for gross proceeds of $1,900,045.

The financing strengthens the company's financial position and supports ongoing development in Canada and Germany. Rock Tech has secured irrevocable subscription agreements for an additional tranche representing gross proceeds of $3,250,000, which is expected to close on or before August 28, 2026, subject to customary closing conditions and final TSX Venture Exchange approval.

More than 60% of the total $5.2 million offering has been subscribed by a new strategic investor. This investor is concurrently entering into a strategic equity participation at the project level in the fully permitted Guben lithium hydroxide converter in Brandenburg, Germany. The Guben facility is designed for an annual production capacity of 24,000 tonnes of lithium hydroxide monohydrate and holds recognition as a Strategic Project under the European Union Critical Raw Materials Act. Further details of the Guben transaction will be announced after its final close.

The balance of the private placement was subscribed by Canadian investors, including first-time participants and existing shareholders. Rock Tech intends to deploy the net proceeds to advance the definitive feasibility study for the Georgia Lake Mine and the development of the Red Rock Converter in Ontario, alongside general corporate and working capital requirements. The company's Ontario portfolio also includes the wholly owned Georgia Lake Project and the Red Rock Converter development.

Each unit issued in the private placement consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at an exercise price of $0.90 for a period of 36 months following issuance.

In connection with the first tranche, Rock Tech may pay eligible finders a cash commission equal to 6% of the gross proceeds raised from introduced subscribers. Subject to regulatory acceptance, the company may also issue broker warrants equal to 6% of the units sold through finders, with each broker warrant exercisable at $0.65 per share for 24 months.

Read the full announcement: Rock Tech Lithium Closes First Tranche of a CAD$5.2 Million Private Placement with the Majority having been Subscribed by New Strategic Investor in the Guben Converter