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Leading Edge Materials Raises C$6M for Rare Earth, Graphite Work
The C$6M placement funds Norra Kärr pre-feasibility and Woxna restart studies. Cornerstone shareholder Eric Krafft backstops any unfilled units.
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Leading Edge Materials Corp. priced a non-brokered private placement of 24 million units at C$0.25 each, aiming for gross proceeds of C$6 million. The TSX Venture-listed company will use the funds to advance its Norra Kärr heavy rare earth element project in Sweden after receiving a 25-year mining lease, and to study a restart of the Woxna graphite mine. Proceeds also cover general working capital.
Each unit contains one common share and one warrant exercisable at C$0.40 per share for two years. The company expects insiders to participate, which would trigger related-party rules under MI 61-61. It plans to rely on exemptions because the insider subscription value is below 25% of market cap. Cornerstone shareholder Eric Krafft has agreed to buy any units not taken by other investors.
The placement targets Canadian, Nordic and other international investors. Securities will carry a four-month-plus-one-day hold period from closing. The company must still receive TSX Venture Exchange approval and meet other conditions before the deal closes.
Leading Edge Materials also holds a 90% stake in the Bihor Sud nickel-cobalt exploration alliance in Romania. Work there is focused on defining polymetallic targets, with the company seeking alternative capital for those activities.