IRIS Metals gains $3.5 million funding for US lithium

IRIS Metals (ASX: IR1) announced an investment of $1,500,000 from the Electrification and Decarbonization AIE LP Fund, managed by Waratah Capital Advisors.

The placement saw 1,500,000 shares issued at $1 per share with a bonus 750,000 options with an exercise price of $1.50 two years from the date of issue.

In addition to the $1,500,000 placement, Waratah Capital committed to an additional 2,000,000 shares in the upcoming public offering. While the public offering document has yet to be released, IRIS Metals has announced it will be completed on the same terms as the private placement.

The shares issued at $1 represent a 13.8% discount to the last traded price of IRIS Metals shares.

In relation to the placement, IRIS Metals’ Chairman Simon Lill said:

“We have received a lot of incoming enquiries about our Lithium Project in South Dakota. Waratah are a significant and successful Lithium investor and we are thrilled to have their investment validation for what the Iris team has put together. We look forward to working with Waratah as we advance the Company’s projects.”

IRIS Metals has said the funds raised through the private placement ($1,500,000) and pending public offering (at least $2,000,000) will be used for:

• Meeting the costs of re-complying with Chapters 1 and 2 of the ASX Listing Rules
• Furthering the advancement of the South Dakota hard rock lithium projects

In IRIS Metal’s same day released quarterly report ending 31 December 2022, the company highlighted significant progress at its two South Dakota Projects, Black Diamond and Beecher. Both of which have received a mining permit covering their claims, accordingly IRIS Metal’s geologist continue to push forward with their geological mapping and lithium bearing pegmatites sampling.

IRIS Metals anticipates the release of an in-depth update in the near term.