$2.5M funding package + drilling program expanded to 5,000m

Published 28-FEB-2022 10:00 A.M.

53.4 seconds read

Today LRS announced a $2.5M financing package signed with Lind Asset Management over a 14 month loan term.

With fresh funding secured, LRS also announced that the 2,000m drilling program at its Lithium project in Brazil would be expanded to 5,000m with the ultimate aim of putting together a maiden JORC resource.

The terms of the funding facility are as follows:

$2.75M face value loan, repayable over a 14 month period.
LRS to issue Lind 35 million unlisted options with an exercise price of 5c, expiring March 2026.
LRS to pay Lind a $75k commitment fee.
Funds raised from “in the money” options being exercised must be used to repay the principal of the loan.

So in total over the 14 month loan term, LRS is paying $325k in loan fees and 35m in unlisted options exercisable @ 5c.

In our last note, where we covered LRS’ first spodumene intercept from its drilling program at its Brazilian lithium project, we mentioned we wanted to see LRS shore up its balance sheet so we welcome the news from Monday.