NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) has announced plans for a private placement offering of units to raise gross proceeds of approximately C$25 million, with funds expected to support development of its United Arab Emirates battery anode facility, update its Molo technical report, and for general corporate purposes.
The company said it has engaged Stifel Canada as lead agent and sole bookrunner, with Maxim Group acting as co-agent, for a “best-efforts” offering of about 58.8 million units priced at C$0.425 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant.
Each whole warrant will be exercisable at C$0.55 per share beginning 61 days after closing and will expire three years after the closing date.
NextSource said the offering is being conducted under the listed issuer financing exemption pursuant to National Instrument 45-106, allowing the units to be sold to investors in Canadian provinces other than Québec and in certain other jurisdictions outside Canada.
The company noted that Vision Blue Resources Limited has a contractual right to participate in equity financings to maintain its ownership interest and will be notified of the offering. NextSource said it anticipates Vision Blue may participate to maintain its pro-rata ownership, although no assurance can be provided.
NextSource also disclosed an amended and restated loan facility with Vision Blue, increasing the maximum capacity from US$30 million to US$50 million. Drawdowns remain at Vision Blue’s discretion. The company said it expects to enter into a consent agreement at closing under which Vision Blue would commit to advancing US$5 million under the facility, subject to certain conditions, and extend the maturity date to 12 months after closing.
The offering is expected to close on or about February 24.