Snow Lake Energy Announces Pricing of Public Offering

Rhea-AI Summary

Snow Lake Energy (NASDAQ: LITM) has announced the pricing of a public offering of 15,750,000 common shares at $0.41 per share, aiming to raise gross proceeds of approximately $6.45 million. The offering is expected to close on December 20, 2024, with ThinkEquity serving as the sole placement agent. The company plans to use the net proceeds for working capital and general corporate purposes. The securities will be offered through a shelf registration statement on Form F-3 filed with the SEC.

Positive

• Secured $6.45 million in gross proceeds through public offering
• Successful pricing of offering indicates market interest
• Registration statement already effective with SEC

Negative

• Significant shareholder dilution through issuance of 15,750,000 new shares
• Low offering price at $0.41 per share
• Proceeds allocated to general purposes rather than specific growth initiatives

Insights

Financial Analyst

This public offering represents a significant dilution event for Snow Lake Energy, with $6.45 million being raised through 15,750,000 new shares at $0.41 per share. The pricing reflects a substantial discount to recent trading levels, which is concerning given the company's already small market cap of $21.2 million. The dilution impact is particularly severe, as this offering essentially doubles the company's outstanding shares. While the capital raise provides needed working capital, the terms suggest significant pressure on the company's financial position. The lack of specific use of proceeds beyond "working capital and general corporate purposes" adds uncertainty about the strategic direction and immediate needs. For retail investors, this offering structure typically signals near-term financial strain and could lead to continued share price pressure. The involvement of ThinkEquity as the sole placement agent, rather than securing a more traditional underwritten offering, may indicate institutional interest.

Mining Industry Analyst

The timing and structure of this capital raise raises questions about Snow Lake's transition from lithium to uranium exploration. The company's pivot to uranium exploration, while potentially strategic given current market conditions, requires substantial capital for exploration and development. However, the relatively small size of this raise at $6.45 million may be insufficient for meaningful uranium exploration programs, which typically require significant investment for drilling, sampling and resource definition. The pricing at $0.41 per share reflects challenging market conditions for junior mining companies, particularly those in transition between commodities. The lack of detailed use of proceeds is particularly noteworthy in the mining context, where investors typically expect clear allocation of funds toward specific exploration or development milestones.

Winnipeg, Manitoba--(Newsfile Corp. - December 19, 2024) - Snow Lake Resources Ltd., d/b/a Snow Lake Energy (NASDAQ: LITM) ("Snow Lake" or the "Company"), a uranium exploration company, today announced the pricing of a best efforts public offering of 15,750,000 common shares at a public offering price of $0.41 per share, for gross proceeds of approximately $6.45 million, before deducting placement agent fees and offering expenses. All of the common shares are being offered by the Company. The offering is expected to close on December 20, 2024, subject to satisfaction of customary closing conditions.

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

ThinkEquity is acting as sole placement agent for the offering.

The securities will be offered and sold pursuant to a shelf registration statement on Form F-3 (File No. 333-272324), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the "SEC") on June 1, 2023 and declared effective on August 9, 2023. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or 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 Black Lake Uranium Project is an exploration stage project located in the Athabasca Basin, Saskatchewan and the Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia. The Shatford Lake Project is an exploration stage project located adjacent to the Tanco tantalum, cesium, and lithium 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.

Investor Relations

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/234452

FAQ

How much money is Snow Lake Energy (LITM) raising in its December 2024 public offering?

Snow Lake Energy is raising approximately $6.45 million in gross proceeds through the public offering of 15,750,000 common shares priced at $0.41 per share.

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

The public offering price is $0.41 per common share.

When will Snow Lake Energy's (LITM) public offering close?

The offering is expected to close on December 20, 2024, subject to customary closing conditions.

How will Snow Lake Energy (LITM) use the proceeds from its public offering?

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

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

ThinkEquity is acting as the sole placement agent for the offering.