Lithium developer PMET Resources is pursuing financings of up to C$130-million to support the next phase of exploration and development at its Shaakichiuwaanaan critical minerals project in Canada.

The proposed fund-raising will comprise a public offering of common shares to raise up to about C$65-million and a concurrent private placement of flow-through shares, together targeting aggregate proceeds of up to C$130-million.

Under the proposed structure, the public offering will be conducted at a price of C$5.66 a share, while the flow-through placement will be priced at C$9.30 a share, representing a 48% premium to PMET’s last traded price on the TSX on Friday.

PMET said the proceeds will be used to fund an updated and optimised feasibility study for the CV5 deposit, including the incorporation of tantalum as a co-product, and to advance the CV13 deposit towards a preliminary economic assessment covering lithium, caesium and tantalum.

The company added that the financings are expected to significantly de-risk its funding requirements through to a final investment decision (FID), while preserving balance sheet strength and strategic flexibility.

PMET said investor demand had been received from existing and new institutional, professional and sophisticated investors across North America and Australia.

In addition, the company’s largest shareholder, Volkswagen, which holds about 9.553% of PMET, has advised of its intention to participate in a separate private placement of additional common shares, anticipated to raise up to about C$14-million, subject to final terms and timing.

“These financings represent a major step forward for PMET," said president, CEO and MD Ken Brinsden, noting that the financings significantly de-risked the funding requirements of the company through to an FID.

"The strong demand across both the public offering and the flow-through placement reflects growing institutional confidence in the scale, quality and strategic value of the project, and in our disciplined approach to developing it."