Rock Tech Lithium announced the first closing of a non-brokered private placement totaling 7,923,147 units at C$0.65 per unit, for expected gross proceeds of about C$5.2 million. In the initial tranche, the company issued 2,923,147 units and raised approximately C$1.9 million. Rock Tech said it has binding subscription agreements in place for an additional tranche worth C$3.25 million and expects that closing to be completed on or before August 28, 2026, subject to customary conditions.
The company said more than 60% of the offering, or C$3.25 million, was subscribed by a new strategic investor. That investor is also entering into a strategic equity participation at the project level in Rock Tech’s fully permitted Guben lithium hydroxide converter in Brandenburg, Germany. Rock Tech said the investor’s participation in the financing reflects confidence in the company’s broader asset management strategy. Additional details on the Guben transaction are expected to be disclosed separately after final closing.
The remaining portion of the offering was subscribed by Canadian investors, including first-time investors in Rock Tech, as well as existing shareholders. The company said the broader investor participation supports its efforts to advance the Georgia Lake Mine and the Red Rock Converter in Ontario.
Rock Tech plans to use the net proceeds from the financing to advance the definitive feasibility study for the Georgia Lake Mine and the development of the Red Rock Converter, along with general corporate and working capital purposes.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant allows the holder to buy one common share at C$0.90 for a period of 36 months from issuance. The company also said eligible finders may receive a cash commission equal to 6% of gross proceeds from subscribers they introduce, and may receive broker warrants, subject to approval, equal to 6% of the units sold to such subscribers. Each broker warrant would be exercisable at C$0.65 per share for 24 months.
Completion of the offering remains subject to final approval from the exchange.
Source: Rock Tech Lithium
