WINNIPEG, Manitoba - Snow Lake Resources (NASDAQ:LITM) Ltd., also known as Snow Lake Energy (NASDAQ: LITM), a Canadian clean energy exploration company, has set forth the terms of its public share offering. The company, currently trading at $0.82 and showing a remarkable 418% return over the past week according to InvestingPro data, is offering 15,750,000 common shares at $0.41 each, aiming to raise approximately $6.45 million before fees and expenses. The offering is slated to close on December 20, 2024, pending customary closing conditions.
The net proceeds from the offering are designated for working capital and other general corporate purposes, a crucial move given that InvestingPro analysis shows the company is quickly burning through cash with a negative free cash flow of $6.01 million in the last twelve months. ThinkEquity is the sole placement agent for this offering. The shares are being offered pursuant to a shelf registration statement, including a base prospectus, filed with the U.S. Securities and Exchange Commission (SEC) on June 1, 2023, and declared effective on August 9, 2023.
Snow Lake Energy, with a project portfolio that includes two uranium and two hard rock lithium projects, focuses on the exploration of its uranium ventures to contribute to the clean energy transition. With a market capitalization of $23.45 million and maintaining a healthy current ratio of 1.69, the company holds more cash than debt on its balance sheet. The company's lithium projects will see limited exploration until market conditions improve.
This news is based on a press release statement and the offering is made exclusively by means of a written prospectus. Copies of the prospectus supplement and accompanying prospectus will be accessible on the SEC website and from ThinkEquity's offices in New York.
Snow Lake Energy's uranium projects are the Black Lake Uranium Project in Saskatchewan's Athabasca Basin and the Engo Valley Uranium Project in Namibia's Skeleton Coast. The Shatford Lake Project and the Snow Lake Lithium™ Project, both exploration stage endeavors, are located in Manitoba.
The company has expressed that the forward-looking statements in the press release involve risks and uncertainties, and there is no assurance that the expectations and projections will be realized. The press release also contains cautionary statements regarding these forward-looking statements.
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