- Spark Energy Minerals (SPARF, Financial) has secured $1.69 million from Sorbie Bornholm LP through a private placement.
- The company will receive $140,833.33 monthly over 12 months starting from the closing date of the offering.
- Proceeds will fund exploration at the Arapaima Lithium Project in Brazil.
Spark Energy Minerals Inc. (OTC: SPARF) announced a non-brokered private placement offering of up to 31,250,000 units priced at $0.072 per unit, aiming to raise aggregate gross proceeds of $2.25 million. The company has secured $1.69 million from institutional investor Sorbie Bornholm LP via a sharing agreement involving 12 monthly settlement tranches.
Each unit in the offering comprises one common share and half a warrant, where each full warrant allows the purchase of an additional common share at $0.14 over a period of 36 months. The settlement price will be measured against a benchmark price of $0.1182, potentially increasing proceeds if the settlement price exceeds this benchmark. The company is set to receive monthly payments amounting to $140,833.33 for a duration of 12 months. Sorbie will also receive a corporate finance fee of $111,000 through the issuance of 1,541,667 units.
The net proceeds from this offering are intended to fund further exploration of Spark Energy's flagship Arapaima Lithium Project situated in Brazil's Lithium Valley, along with covering general working capital requirements. The closing of the offering is anticipated around April 30, 2025, pending all necessary approvals, including those from the Canadian Securities Exchange.
CEO Eugene Hodgson remarked that the strategic investment by Sorbie is a testament to confidence in Spark Energy's long-term vision and growth potential. Sorbie's Managing Director, Whitney Kofford, emphasized the importance of this partnership in supporting Spark Energy's ambitions in the global battery metals market, particularly within the context of energy transitions.
