CAPITAL MARKETS

Fortune favours Frontier but not the Bold

June has brought mixed results for junior lithium equity raisings in Toronto, in a market that has seen funds flow to cannabis stocks in the past year.

Staff reporter
 Toronto’s financial district. Image: iStock.com/Elijah-Lovkoff

Toronto’s financial district. Image: iStock.com/Elijah-Lovkoff

Yesterday, Frontier Lithium (TSXV: FL) closed an oversubscribed flow-through financing but gold and lithium hopeful Bold Ventures (TSXV: BOL) said it had terminated its financing, which had been designed to help it maintain listing requirements.

Frontier had announced a C$1.5 million (US$1.1 million) private placement in April at 40c per flow-through unit to fund exploration at its PAK lithium project in Ontario.

It announced entering a strategic partnership with Glencore company XPS Expert Process Solutions and Queen's University professor Dr Ahmad Ghahreman in April to develop a process to refine spodumene concentrate into lithium hydroxide.

Yesterday, the company said the placement was oversubscribed by $500,000, or 33%, generating $2 million (US$1.5 million) in gross proceeds.

Its shares closed yesterday at 34.5c, putting its market capitalisation above $54 million (US$40 million).

Meanwhile, Bold Ventures had announced a non-brokered private placement at 2.5c per working capital unit in February, designed to raise up to $500,000 (US$372,000).

The company said at the time the TSX Venture Exchange had granted a waiver on the minimum 5c price for placements, conditional on the company closing at least $200,000 to provide it with sufficient working capital to meet the continued listing requirements.

The company's chairman Richard Nemis passed away in March and Bold since extended the financing in both April and May.

It had anticipated general and administrative expenses of more than $106,000 over the next six months, $29,000 on option payments for three projects and spending at least $17,000 on its J&B lithium property to maintain good standing.

Bold also said in May it had settled about $70,000 in debt owed to two insiders through the issue of 770,000 shares at 5c each, with one forgiving a debt of $32,000 for management fees owed to facilitate the offering.

In a brief statement yesterday, president and CEO David Graham said the company would not be proceeding with the offering.

Its shares are at a 52-week low of 1.5c, capitalising it about $1.9 million (US$1.4 million).

Companies that no longer meet continued listing requirements of Tier 2 may be delisted or moved to NEX, the TSXV says.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.