LU7 to Raise $2.14M in Placement and Launch of Entitlement Offer of $1.02M for Bécancour Lithium Refinery DFS

Lithium Universe Limited (referred to as "Lithium Universe" or the "Company," ASX: "LU7”) is pleased to announce the following:

Placement

The Company has received binding commitments from sophisticated and professional investors pursuant to a placement to raise $2.14 million by the issue of 171,320,000 fully paid shares (“Shares”) at an issue price of $0.0125 per Share (“Placement”). The Placement is to be undertaken in two tranches:

• Tranche 1: issuing 155,320,000 Shares raising $1,941,500; and
• Tranche 2: issuing 16,000,000 Shares and raising $200,000, to be approved at a shareholders meeting, expected to be 9 December 2024 (“Shareholders Meeting”).

The issue date of the Tranche 1 Placement Shares is to take place on 8 November 2024.

Highlights

• Binding commitments received to raise $2.14 million
• Launch of pro-rata Non-Renounceable Entitlement Offer to raise $1.02 million
• Issue price of the Placement and Entitlement Offer is $0.0125 per share
• A total of $3.16 million in capital raising
• Participants in Placement and Entitlement Offer to receive free attaching options
• On the basis of 1 option for every 1 share issued with exercise price of $0.03 and expiry date of 12 January 2026
• Tranche 2 Shares and all Options to be issued under the Placement are subject to shareholder approval
• Funds will mainly be used to complete the Bécancour Lithium Refinery DFS
• Maintains momentum, closer to establishing a lithium refinery in Bécancour

Participants in the Placement will also receive, subject to shareholder approval (to be undertaken at the Shareholders Meeting), free attaching options on the basis of one (1) option for every one (1) share issued, with each option having an exercise price of $0.03 and expiry date of 12 January 2026 (“Options”). The Company intends to list the Options as soon as possible. The issue of the Tranche 1 Placement Shares will be made out of the Company’s existing placement capacity under Listing Rule 7.1 and 7.1A.

Included in the Tranche 2 Placement is an amount of $90,000 from Iggy Tan, Patrick Scallan and Gernot Abl. The share issues will also be subject to shareholder approval at the forthcoming shareholders meeting.

The Placement was jointly managed by SP Corporate Advisory (Joint Lead Manager), Ignite Equity (Joint Lead Manager), and GBA Capital (Co-Manager). The costs associated with the Placement was a 6% fee on all funds raised.

Executive Chairman, Mr Iggy Tan stated “We are pleased with the outcome of the Placement in a challenging market, which reaffirms support for the Company’s strategy to complete the Definitive Feasibility Study for the Bécancour Lithium Refinery. On September 30, 2024, the Company reached a significant milestone, having released the positive and robust Preliminary Feasibility Study, displaying strong fundamentals despite the current low lithium pricing environment.

The Company is highly committed to our shareholders, and I am pleased we can offer them the same investment terms extended to sophisticated and professional investors. The Board and Management Team remains dedicated to engaging with our existing shareholders and delivering against our strategy. If fully subscribed, proceeds from the Placement and Entitlement Offer will strengthen our balance sheet, bringing us closer to establishing an operational lithium conversion plant in Bécancour, Québec.”

Entitlement Offer

Overview

The Company also intends to undertake a non-renounceable Entitlement Offer of 1 Share for every 10 Shares held by Eligible Shareholders (defined below) at the same issue price as the Placement of $0.0125, to raise up to approximately $1.024 million (“Entitlement Offer”). Participants in the entitlement offer will also receive free attaching Options (on a 1 for 1 basis), which also will be listed. Full details of the Entitlement Offer (including the record date and eligibility requirements) will be set out in the Prospectus expected to be lodged with the ASIC on or about 30 October 2024.

Other key details for the Entitlement Offer are:

Eligible Shareholders and Applying for Shares under the Entitlement Offer

The Entitlement Offer will be open to all eligible shareholders who have a registered address within Australia, New Zealand, Germany, Hong Kong, Switzerland, the United Kingdom and Singapore and who hold shares on the record date (Eligible Shareholders), and is proposed to close on Friday 22 November 2024 (unless otherwise extended by the Board). All Shares issued will rank equally with existing Shares on issue and the Company will apply for quotation of the new Shares and Options issued pursuant to the Entitlement Offer.

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