Snow Lake Announces Closing of Public Offering for Gross Proceeds of US$15 Million

Rhea-AI Summary

Snow Lake Resources (NASDAQ: LITM) has successfully closed its previously announced best-efforts public offering, raising US$15 million in gross proceeds. The offering consisted of 18,750,000 common shares priced at US$0.80 per share. ThinkEquity served as the sole placement agent for the transaction. The company plans to utilize the net proceeds for working capital and general corporate purposes. The offering was conducted under an effective shelf registration statement filed with the SEC, with the final prospectus supplement now available on the SEC's website.

Positive

• Successfully raised US$15 million in gross proceeds
• Completed public offering under effective shelf registration

Negative

• Significant shareholder dilution through issuance of 18,750,000 new shares
• Offering price of US$0.80 per share indicates relatively low valuation

Insights

Financial Analyst

<p>This <money>$15 million</money> capital raise at <money>$0.80</money> per share represents significant dilution for existing shareholders, as the offering price is substantially below recent trading levels. With a market cap of approximately <money>$45.7 million</money>, this financing represents roughly <percent>33%</percent> dilution. The timing and pricing suggest urgent capital needs, which is concerning given the early-stage nature of Snow Lake's uranium exploration activities. The lack of specific use of proceeds beyond 'working capital and general corporate purposes' provides visibility into the company's strategic plans. For a junior mining company, maintaining sufficient working capital is crucial, but the terms of this raise indicate challenging market conditions and financing options.</p><p>In simpler terms: The company is selling new shares at a discount to raise money, which decreases the value of existing shares. They're getting <money>$15 million</money>, but current shareholders will own a smaller piece of the company. The vague explanation of how they'll use the money isn't particularly reassuring.</p>

Mining Industry Expert

<p>The capital injection comes at a critical time in the uranium market cycle, with spot prices reaching multi-year highs. However, Snow Lake's transition from lithium to uranium exploration raises strategic questions. Early-stage uranium exploration requires substantial capital for geological surveys, drilling programs and regulatory compliance. The <money>$15 million</money> raise, while providing near-term working capital, may not be sufficient for a comprehensive exploration program given the high costs associated with uranium projects. The company's ability to execute in the uranium space remains unproven, especially considering its previous focus on lithium resources.</p><p>For the average investor: Think of this like a company switching from searching for gold to searching for diamonds - it's a completely different expertise and set of challenges. While uranium prices are attractive right now, starting from scratch in this field requires significant money and expertise and <money>$15 million</money> might not be enough for all the necessary work.</p>

Winnipeg, Manitoba--(Newsfile Corp. - December 31, 2024) - Snow Lake Resources Ltd., (NASDAQ: LITM) d/b/a Snow Lake Energy ("Snow Lake" or the "Company"), a uranium exploration company, today announced the closing of its previously announced best-efforts public offering of 18,750,000 common shares at a public offering price of US$0.80 per share, for gross proceeds of approximately US$15.0 million before placement agent fees and offering expenses.

Snow Lake intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

ThinkEquity acted as sole placement agent for the offering.

The offering is being made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the "SEC"). The final prospectus supplement relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Snow Lake Resources Ltd.

Snow Lake Resources Ltd., d/b/a Snow Lake Energy, is a Canadian clean energy exploration company listed on (NASDAQ: LITM), with a global portfolio of clean energy mineral projects comprised of two uranium projects and two hard rock lithium projects. The Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia, and the Black Lake Uranium Project is an exploration stage project located in the Athabasca Basin, Saskatchewan and. The Shatford Lake Project is an exploration stage project located adjacent to the Tanco lithium, cesium and tantalum mine in Southern Manitoba, and the Snow Lake Lithium™ Project is an exploration stage project located in the Snow Lake region of Northern Manitoba.

The current focus of Snow Lake is advancing the exploration of its two uranium projects to supply the raw materials needed for the clean energy transition and emissions free power, while exploration activities on its two lithium projects will remain limited until such time as the lithium market recovers from its current depressed levels. Learn more at www.snowlakeenergy.com.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation statements with regard to Snow Lake Resources Ltd.. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Snow Lake Resources Ltd.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Some of these risks and uncertainties are described more fully in the section titled "Risk Factors" in our registration statements and annual reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Snow Lake Resources Ltd. undertakes no duty to update such information except as required under applicable law.

Contact and Information

Frank Wheatley, CEO
+1 (604) 562-1916

ir@snowlakelithium.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235648

FAQ

How much did Snow Lake Resources (LITM) raise in its December 2024 public offering?

Snow Lake Resources raised US$15 million in gross proceeds through its December 2024 public offering.

What is the price per share for LITM's December 2024 public offering?

The public offering price was US$0.80 per share.

How many new shares did Snow Lake Resources (LITM) issue in the December 2024 offering?

Snow Lake Resources issued 18,750,000 common shares in the December 2024 public offering.

What will Snow Lake Resources (LITM) use the proceeds for?

Snow Lake Resources intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

Who was the placement agent for LITM's December 2024 public offering?

ThinkEquity acted as the sole placement agent for the offering.