Green Technology Metals to raise A$4m for Ontario lithium expansion

Green Technology Metals Limited (ASX: GT1) has announced a A$4 million entitlement offer to advance its lithium projects in Ontario, Canada. The non-renounceable pro-rata entitlement offer, structured as one new share for every 3.85 shares held, is priced at A$0.04 per share. Shareholders who participate will also receive one free attaching option for every four new shares, with an exercise price of A$0.06 and a three-year expiry.

The funds raised will be used to accelerate project development at the Seymour Lithium Project, support the Thunder Bay lithium conversion facility Pre-Feasibility Study (PFS), and facilitate ongoing permitting and Indigenous consultations. Green Technology Metals has also secured A$3 million in underwriting, ensuring a substantial portion of the offer is fully subscribed.

Why Is Green Technology Metals Raising Capital Now?

The decision to launch the entitlement offer aligns with Green Technology Metals’ broader strategic objective of establishing a vertically integrated lithium business in Ontario. The company aims to secure downstream lithium processing capabilities in Canada, positioning itself within North America’s growing lithium-ion battery supply chain.

In recent years, lithium demand has surged, driven by the electric vehicle (EV) revolution and increased global efforts to transition away from fossil fuels. With major automakers ramping up EV production and governments implementing policies to strengthen domestic battery supply chains, securing a stable supply of battery-grade lithium hydroxide has become a strategic priority for North America.

By advancing the Thunder Bay lithium conversion facility and accelerating Definitive Feasibility Studies (DFS) at Seymour Lithium Project, Green Technology Metals is positioning itself to capitalize on this demand. The entitlement offer provides the necessary funding to progress these critical projects, ensuring the company remains on track to develop a fully integrated lithium supply solution.

How Is the Entitlement Offer Structured?

The 1-for-3.85 non-renounceable entitlement offer means eligible shareholders can subscribe for one new share for every 3.85 shares held as of March 21, 2025. The offer price of A$0.04 per new share reflects current market conditions while allowing existing shareholders to participate at a discount to recent trading levels.

A key feature of the offer is the inclusion of attaching options, which provide additional upside potential. For every four new shares subscribed, investors will receive one free unquoted option, exercisable at A$0.06 within three years. This structure incentivizes participation by giving investors exposure to potential future share price appreciation.

The offer is partially underwritten up to A$3 million, with Canaccord Genuity (Australia) Limited and Bell Potter Securities Limited serving as joint lead managers. Notably, Green Technology Metals’ board members Cameron Henry, John Young, and Patrick Murphy have collectively committed A$450,000 as sub-underwriters, reinforcing their confidence in the company’s long-term vision.

What Will the Funds Be Used For?

The capital raised will be allocated across multiple high-priority initiatives, including advancing the Definitive Feasibility Study (DFS) for the Seymour Lithium Project, bringing the asset closer to production readiness. It will also support the Thunder Bay lithium conversion facility Pre-Feasibility Study (PFS), a key step in establishing domestic lithium processing capabilities in North America.

Additionally, the funding will be directed toward permitting, approvals, and Indigenous consultation efforts at Seymour, ensuring regulatory compliance and community engagement. A portion will also be used for general working capital to maintain project momentum and cover entitlement offer costs.

With a 24.9Mt global lithium resource at 1.13% Li₂O, Green Technology Metals has a strong asset base. However, moving from resource development to production requires extensive feasibility studies, permitting, and infrastructure investment. The entitlement offer ensures the company can maintain progress on these fronts without delays caused by capital constraints.

How Does This Fit into Ontario’s Lithium Industry?

Ontario has emerged as a key jurisdiction for hard rock lithium exploration, with several companies advancing spodumene-based projects. The region’s established infrastructure, proximity to industrial hubs, and access to clean hydroelectric power make it a prime location for lithium processing.

Green Technology Metals’ Seymour Lithium Project and Thunder Bay conversion facility are integral components of Ontario’s push to develop a local lithium supply chain. By progressing these projects, the company is aligning itself with provincial and federal initiatives aimed at reducing North American dependence on imported battery metals.

Investor Confidence and Market Sentiment

Green Technology Metals’ ability to secure underwriting and sub-underwriting support from its board and institutional investors underscores the market’s confidence in its growth strategy. The lithium sector has faced volatility in recent months due to short-term price fluctuations, but long-term fundamentals remain strong.

North America is actively working to secure local lithium supply chains, with automakers and battery manufacturers seeking domestic sources of lithium hydroxide. This shift presents an opportunity for Green Technology Metals to establish itself as a key supplier, especially as the company advances its downstream processing ambitions.

With feasibility studies progressing at Seymour and Thunder Bay, the successful execution of this entitlement offer will provide the company with the necessary capital to achieve its next major milestones. As lithium demand continues to grow, Green Technology Metals remains well-positioned to become a significant player in Ontario’s lithium sector.