PERTH (miningweekly.com) – Junior Burley Minerals will raise A$4.5-million in a combination of a flow-through share placement and a share placement to fund lithium exploration in Canada.

The ASX-listed company has received firm commitments to undertake a flow-through share placement, raising an initial A$3-million, or A$3.33-million through the issue of more than 7.6-million shares at a 78% premium to the company’s last closing price.

The company will also undertake a private placement of more than 5.5-million shares, priced at 21c each, raising up to A$1.2-million. These shares will be issued under the company’s existing placement capacity.

“Burley is excited to receive commitments for a A$4.5-million capital raise, and to see the high level of interest at a time of improving lithium prices and demand,” said MD Wayne Richards.

“The additional funding will allow Burley to accelerate drilling at its CanadianTier 1 lithium projects in the province of Quebec, Canada, in close proximity to Canada’s only operating spodumene mine and concentrator. The flow-through share provisions under Canadian tax law mean we are able to raise capital at a significant premium to the current share price, which, in turn, minimises dilution to existing shareholders significantly.

“The funding will allow the company to further ramp up exploration and resource drilling and resource targeting activities at the Chubb lithium project. Our geologists are currently on the ground at Chubb, planning additional holes to significantly extend our 5 000 m Phase 1 drilling campaign announced last month,” said Richards.

“Burley is working to complete the proposed acquisition of the Bouvier lithium project and to initiate its spodumene targeting work inclusive of drill planning and approvals. We also look forward to our initial targeting work kicking off in the Gascoyne lithium projects along the same corridor as the Yinnetharra lithium project, currently being drilled by ASX-listed Delta Lithium.”