March 1, 2022
Noram Lithium Corp. (TSXV:NRM, Not Rated, Koby Kushner) has closed its previously announced US$14M royalty/equity financing with Lithium Royalty Corp. (LRC) and Waratah Capital Advisors (read more). The deal comprises two components: 1) a US$5M royalty financing for a 1% gross overriding royalty on Noram’s 100%-owned Zeus project in Nevada, US$1M of which is payable upon completion of a DFS, and 2) a US$9M equity financing priced at C$0.825/sh, with no warrants attached. The closing of the financing has added US$13M to Noram’s treasury, and has brought LRC/Waratah as a key cornerstone investor with a ~15.7% direct interest in the company – which we see as a major stamp of approval. Further, Noram is now sitting at ~C$18M in working capital, making it well financed for the catalyst-rich year ahead. The company plans to begin a 12-hole infill drilling program this quarter, with the goal of upgrading inferred resources to M&I ahead of a PFS due by year-end (we note that M&I+I resources total ~5.7 Mt LCE, ~68% of which is inferred). Noram also plans to complete additional metallurgical testing and commence baseline studies and green initiaves, along with advancing water rights negotiations. More information on Noram and its Zeus project is available in our recent Prospective Picks report. Read more
