The net proceeds are planned for lithium brine and claystone drilling programs at FLV and future acquisitions, marketing and general working capital, it said in a brief release.
The company will issue up to 11.25mln units at 40 cents per unit. Each unit will consist of one share and one-half a share purchase warrant. Each of the latter warrants will entitle the holder to buy one share for 75 cents for 24 months after closing.
The company also noted that it may increase the size of the private placement based on market conditions.
Shares nudged up 2.22% to C$0.46 in Toronto.