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Highlights

  • Company to raise up to $2.25 million through non-brokered private placement financing
  • $1.69 million of offering tied to monthly performance-based sharing agreement with Sorbie Bornholm LP
  • Funds to support exploration at Arapaima Lithium Project and general working capital

Spark Energy Minerals Inc. (CSE: SPRK) has announced a non-brokered private placement to raise up to $2.25 million through the issuance of 31,250,000 units at $0.072 per unit. The company intends to use the proceeds primarily for exploration at its Arapaima Lithium Project in Minas Gerais, Brazil, and for general corporate purposes.

The financing includes a sharing agreement with institutional investor Sorbie Bornholm LP, under which $1.69 million of the offering will be subject to monthly settlement tranches over a 12-month period. The company’s proceeds from these tranches will depend on the comparison between the settlement price and a pre-agreed benchmark price of $0.1182.

If the settlement price—calculated using a 20-day volume-weighted average—is higher than the benchmark price, Spark Energy stands to receive more than 100% of the scheduled monthly amount. Conversely, if the settlement price falls below the benchmark, the proceeds will be reduced accordingly. The number of units issued to Sorbie will remain fixed, regardless of fluctuations in market value.

Each unit in the offering consists of one common share and one-half of a common share purchase warrant. Each full warrant allows the holder to buy an additional common share at a price of $0.14, exercisable for 36 months from the closing date of the offering.

The company indicated that it will continue additional fundraising efforts to achieve full subscription of the offering. Spark Energy is pursuing further investment to support its lithium exploration activities in Brazil’s Lithium Valley, a region considered prospective for battery metal resources.

The offering remains subject to standard closing conditions and regulatory approvals. No assurance was given on the exact timing or outcome of the fundraising.