Rock Tech Lithium Inc. has upsized its non-brokered private placement to target aggregate gross proceeds of up to approximately C$6.0 million and closed the second tranche of the financing, raising C$3.51 million.

The upsized offering allows the company to issue up to 9,219,301 units priced at C$0.65 per unit. The second tranche comprised 5,402,493 units. Across both completed tranches to date, Rock Tech has issued 8,171,793 units for total gross proceeds of approximately C$5.31 million, already exceeding the original placement volume target of C$5.2 million.

Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at an exercise price of C$0.90 for 36 months following issuance. In connection with the second tranche, the company paid cash finders' commissions of C$162,602.70 and issued 253,155 finders' warrants exercisable at C$0.65 for 24 months.

A strategic investor subscribed for C$3.25 million of the offering. Rock Tech expects to enter into a strategic equity participation at the project level with this investor for the fully permitted Guben lithium hydroxide converter in Brandenburg, Germany. The Guben project previously received recognition as a Strategic Project under the European Union Critical Raw Materials Act and secured up to EUR 150 million in non-binding export credit agency support from UK Export Finance and Finnvera.

Net proceeds from the financing will be directed toward advancing the Definitive Feasibility Study for the Georgia Lake Mine and developing the Red Rock Converter in Ontario, alongside general corporate and working capital purposes. Rock Tech's wholly-owned Georgia Lake Project is intended to supply raw material for the company's North American operations and is being developed in partnership with local Indigenous communities.

Closing of the offering remains subject to the final approval of the TSX Venture Exchange. All securities issued under the placement are subject to a four-month statutory hold period.

Alongside the financing, Rock Tech is transitioning its Chief Financial Officer function to its Canadian operations as part of its strengthened presence in the country, appointing Derek Sobel as the new CFO following Christopher Wright's relocation to Australia.

Read the full announcement: Rock Tech Lithium Announces Upsize of Previously Announced Private Placement to Up to C$6.0 Million