Prairie Lithium Corp, an Emerald Park, Saskatchewan-based lithium resource and technology developer, has completed a C$7.5 million private placement. The deal was led by Canadian private equity firm PFM Capital. The proceeds will be used in part to fund resource exploration and development opportunities.
EMERALD PARK, Saskatchewan–(BUSINESS WIRE)–PRAIRIE LITHIUM CORPORATION (the “Company” or “Prairie Lithium”) is pleased to announce the completion of a $7,506,000 private placement [of common shares and convertible debentures] led by PFM Capital Inc. The offering was upsized from $4,000,000 as a result of excess demand.
Prairie Lithium has established itself as a dual stream developer of lithium resource and lithium extraction technology. Prairie Lithium’s project is uniquely situated in the Williston Basin, in Saskatchewan, Canada, which has historically been known for oil & gas and potash production. The development of these previous resource industries in the area allows the Company to utilize the existing skills and infrastructure in the application of its rapid lithium extraction technology.
The price of battery grade lithium chemicals is soaring in 2021, surpassing all time highs previously set in 2018. Without the rapid development of new lithium resources, supply shortages of lithium are anticipated by 2025 as a result of increased battery production. The global demand for lithium could increase by 5X by 2030, as a result of auto manufacturers’ committing to offer additional electric models.
Prairie Lithium’s North American based project is well positioned, as Canada and the United States look to execute their critical mineral strategies that would see North America take a larger stake in the global battery material supply chain.
“PFM is excited to partner with Prairie Lithium which has established itself as a Western Canadian leader in this burgeoning industry,” said Jason Moser, Partner and Senior Director of Investments at PFM Capital Inc. “We believe the Company can capitalize on strong macro fundamentals and advance the industry in Saskatchewan and beyond,” he continued.
The Company will use the proceeds of the private placement to fund resource exploration and development opportunities, develop the Company’s lithium extraction and refining process and for general corporate and working capital purposes.
Stikeman Elliott LLP acted as counsel to Prairie Lithium in respect of the private placement.
About Prairie Lithium
Prairie Lithium is a private lithium resource and technology developer situated in the heart of the resource-rich Williston Basin in Saskatchewan, Canada. For more information about the Company, please visit www.prairielithium.ca or contact firstname.lastname@example.org.