Snow Lake Resources Announces Pricing of Offering of Common Shares by Nova Minerals

Rhea-AI Summary

Snow Lake Resources Ltd. (NASDAQ:LITM) announced a block trade of 3,000,000 common shares at $6.00 per share, generating $18,000,000 in proceeds for its shareholder, Nova Minerals Ltd.. Snow Lake will not receive any proceeds from this sale, which is expected to close on April 12, 2022. Post-offering, Nova Minerals will hold approximately 37% of Snow Lake's total outstanding shares. Nova has agreed to a lock-up on its remaining shares until March 21, 2023, reinforcing its commitment to Snow Lake's vision as a leading lithium supplier.

Positive

• Nova Minerals' lock-up agreement demonstrates confidence in Snow Lake's long-term potential and strategic direction.
• The Offering provides liquidity to Nova Minerals, potentially enhancing its ability to support Snow Lake in the future.

Negative

• Snow Lake will not receive any proceeds from the Offering, limiting its immediate capital available for operations or growth.
• The substantial shareholding by Nova Minerals raises potential concerns about shareholder dilution if further shares are issued.

WINNIPEG, MB / ACCESSWIRE / April 7, 2022 / Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. (NASDAQ:LITM) ("Snow Lake" or the "Company") today announced the pricing of an underwritten block trade of 3,000,000 of the Company's common shares ("Common Shares") at a public offering price of $6.00 per share by its shareholder Nova Minerals Ltd. (the "Nova Minerals"), resulting in total gross proceeds to Nova Minerals of $18,000,000 (the "Offering"). Snow Lake will not receive any proceeds from the sale of the common shares by Nova Minerals. The Offering is expected to close on April 12, 2022, subject to customary closing conditions.

Following the closing of the Offering, Nova Minerals will own 6,600,000 Common Shares of the company, or approximately 37% of the total outstanding common shares of the Company. In connection with the Offering, Nova Minerals agreed to lock-up its remaining shares until March 21, 2023. The extension of the Underwriter Lock-Up for Nova's remaining 37% interest in Snow Lake highlights Nova Mineral's confidence in, and long-term commitment to Snow Lake, as it advances its vision of becoming a leading North American lithium supplier.

ThinkEquity is acting as sole book-running manager for the offering.

A registration statement on Form F-1 (File No. 333-264098) relating to the shares was filed with the Securities and Exchange Commission ("SEC") and became effective on April 7, 2022. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 22nd Floor, New York, New York 10004, by telephone at (877) 436-3673, by email at prospectus@think-equity.com. The final prospectus will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov.

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 Lithium Ltd.

Snow Lake is committed to operating a fully renewable and sustainable lithium mine that can deliver a completely traceable, carbon neutral and zero harm product to the electric vehicle and battery market. We aspire to not only set the standard for responsible lithium battery manufacturing, but we intend to be the first lithium producer in the world to achieve Certified B Corporation status in the process. The wholly owned Thompson Brothers Lithium Project covers a 55,318 acre site that has only been 1% explored and contains an 11.1 million metric tonnes indicated and inferred resource at 1% Li2O.

Forward Looking Statements

This press release contains "forward-looking statements" 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. 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. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the final prospectus related to the public offering 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.'s undertakes no duty to update such information except as required under applicable law.

Contact: ir@snowlakelithium.com
www.SnowLakeLithium.com
twitter: @SnowLakeLithium

SOURCE: Snow Lake Resources Ltd.

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https://www.accesswire.com/696637/Snow-Lake-Resources-Announces-Pricing-of-Offering-of-Common-Shares-by-Nova-Minerals

FAQ

What was the pricing of Snow Lake Resources' stock offering?

The stock offering was priced at $6.00 per share.

How many shares were involved in Snow Lake Resources' offering?

The offering involved 3,000,000 common shares.

When is the closing date for the stock offering of Snow Lake Resources?

The offering is expected to close on April 12, 2022.

What percentage of Snow Lake Resources will Nova Minerals own after the offering?

Post-offering, Nova Minerals will own approximately 37% of Snow Lake's total outstanding shares.

What are the implications of the lock-up agreement for Nova Minerals' shares?

The lock-up agreement prevents Nova Minerals from selling its remaining shares until March 21, 2023, indicating its commitment to Snow Lake.