Investors back Recharge Metals’ Express lithium acquisition in upscaled placement
Recharge Metals has received firm commitments from sophisticated and professional investors to raise $3 million.
Investors have overwhelmingly backed Recharge Metals’ (ASX: REC) decision to acquire the Express lithium project in Canada’s prolific James Bay province with a $3 million upscaled capital raising.
Recharge announced earlier this week it was acquiring the project, which managing director Felicity Repacholi-Muir says is in an “emerging world-class lithium province” and surrounded by major discoveries.
As part of the acquisition, Recharge had announced a $2.5 million placement at $0.10 per share to sophisticated and professional investors.
However, the company experienced a “significant” level of demand and upscaled the placement to $3 million.
The company also confirmed it received firm commitments from the board for $100,000 worth of ordinary shares in the placement.
A shareholder meeting will be sought to approve the board’s participation in the raising.
Express lithium project
Recharge revealed on Wednesday it is acquiring Express from DG Resource Management (DGRM), which is the same vendor that sold the world-class Corvette lithium project to Patriot Battery Metals (ASX: PMT).
Drilling at Corvette has continued to intercept broad and high-grade lithium with a notable result of 156.9m at 2.12% lithium at the CV5 pegmatite.
Express comprises 139 mineral claims across two contiguous blocks spanning 73.5sq km.
Ms Repacholi-Muir describes the asset as underexplored and noted outcropping pegmatites have been identified across the tenure.
Projects close to Express include Allkem’s (ASX: AKE) James Bay deposit and Cygnus Metals’ (ASX: CY5) Pontax asset, which are within 15km.
James Bay has a reserve of 37.2 million tonnes at 1.3% lithium, while another nearby project is Nemaska Lithium’s Whabouchi asset with reserve of 36.6Mt at 1.3% lithium.
As well as proximity to advanced lithium projects and discoveries, Express is near to well-established towns, sealed roads, hydro-generated power and airports.
The minimal exploration at Express to date has not focused on lithium and Ms Repacholi-Muir says the asset is an “exceptional opportunity” to create value for shareholders.
Initial exploration will involve high-resolution aerial surveys and magnetics to firm up targets ahead of a summer field campaign.