Snow Lake Energy Announces Closing of US$16 Million Offering

Rhea-AI Summary

Snow Lake Energy (NASDAQ: LITM) has successfully closed its previously announced best-efforts offering, raising US$16.0 million in gross proceeds through the sale of 16,000,000 common shares at US$1.00 per share. ThinkEquity served as the sole placement agent for the offering. The company plans to utilize the net proceeds primarily 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$16 million in gross proceeds
• Completed offering at US$1.00 per share
• Strengthened working capital position

Negative

• Significant shareholder dilution through issuance of 16 million new shares

Insights

Financial Analyst

This $16 million capital raise marks a significant financial development for Snow Lake Energy, representing approximately 20.7% of the company's market capitalization. The offering price of $1.00 per share, aligned with the current market price, suggests a neutral market reception and reasonable pricing strategy that balanced capital needs with shareholder interests.

The successful completion of this financing amid challenging market conditions for small-cap companies is noteworthy. For uranium exploration companies, access to capital is important for maintaining operations and advancing exploration programs. The fact that Snow Lake secured this funding through a best-efforts offering, rather than a firm commitment, indicates careful risk management by both the company and the placement agent.

The dilution impact is substantial, with 16 million new shares being issued, which will significantly increase the company's outstanding share count. However, this must be weighed against the company's immediate need for working capital. The unspecified allocation of funds to "general corporate purposes" provides flexibility but also creates some uncertainty about the specific use of proceeds.

From an investment perspective, this financing provides Snow Lake with an essential cash buffer for operations and potential exploration activities in the uranium sector. The successful closing demonstrates some level of institutional interest in the company's prospects, though investors should monitor the company's burn rate and execution of its business strategy with these new funds.

Winnipeg, Manitoba--(Newsfile Corp. - January 27, 2025) - 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 offering of 16,000,000 common shares at a public offering price of US$1.00 per share, for gross proceeds of US$16.0 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. 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/238551

FAQ

How much did Snow Lake Energy (LITM) raise in its January 2025 offering?

Snow Lake Energy raised US$16.0 million in gross proceeds through a best-efforts offering of 16,000,000 common shares at US$1.00 per share.

What is the price per share for LITM's January 2025 offering?

The public offering price was US$1.00 per share.

How will Snow Lake Energy (LITM) use the proceeds from its US$16M offering?

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

Who was the placement agent for LITM's January 2025 US$16M offering?

ThinkEquity acted as the sole placement agent for the offering.

How many new shares did Snow Lake Energy (LITM) issue in its January 2025 offering?

Snow Lake Energy issued 16,000,000 new common shares in the offering.