Li-FT Power Closes Bookbuild on C$20M Bought Deal, Anchored by Agnico Eagle Subsidiary
Published on 08/08/2026 at 18:34 | Redaktion boerse-global.de
The financing puzzle at Li-FT Power is coming together with unusual speed. After launching the raise on Monday and wrapping up the bookbuild by midweek, the Vancouver-based lithium explorer has now signed a formal underwriting agreement for a C$20.01 million bought-deal placement. The transaction, priced at C$2.90 per share for 6.9 million common shares, is slated to close on August 12 — assuming the TSX Venture Exchange gives its final blessing.
Canaccord Genuity Corp. leads the syndicate as sole bookrunner, backed by a six-bank consortium that includes BMO Nesbitt Burns Inc., Raymond James Ltd., ATB Capital Markets Corp. and SCP Resource Finance LP. Trading on the ASX was suspended as a precaution on Wednesday ahead of the announcement, with the halt lifted once the bookbuild cleared.
An Anchor Investor Steps In
The placement carries a notable industrial endorsement. Avenir Minerals Limited, a subsidiary of Agnico Eagle Mines, has confirmed it will participate in the raise under an existing investor rights agreement. The precise subscription amount hasn't been disclosed, but the involvement of a major mining house signals institutional confidence in Li-FT Power's transition strategy. For Avenir, the move preserves its current ownership stake in the company.
Roughly C$18 million of the gross proceeds is earmarked for the first year of care and maintenance at the Renard diamond mine and its processing plant. That asset sits at the heart of a binding purchase option agreement Li-FT Power signed with Stornoway Diamonds (Canada) Inc. The legal groundwork is already in place: Québec's Superior Court approved the deal on July 14, which grants Li-FT Power the right to acquire the mine and processing infrastructure for a nominal C$1 — after an upfront option fee of C$12 million.
Should investors sell immediately? Or is it worth buying Li-FT Power?
There's a hard deadline attached. By October 3, the company must secure approval from the Ministère des Ressources naturelles et des Forêts to defer rehabilitation work at the Renard site. That regulatory sign-off is a condition precedent for the option to become effective.
Parallel Tracks in Lithium Exploration
While the Renard transaction moves toward completion, Li-FT Power hasn't taken its foot off the gas in its core lithium business. A drill program kicked off July 17 at the Adina-Galinée lithium project in Québec, comprising 163 holes totaling 38,970 metres. The campaign follows earlier consolidation of land packages from Winsome Resources, Azimut Exploration and SOQUEM.
The Yellowknife Lithium Project in the Northwest Territories also continues to generate headlines. Late June results from the BIG-East pegmatite returned 26 metres at 1.29 percent Li2O, with the mineralized system remaining open in multiple directions. Reports also suggest the company is commissioning a scoping study for a lithium carbonate converter tied to Yellowknife — a downstream move that would extend Li-FT Power beyond raw material extraction.
Management has been reinforced for the next phase of development. Jeff Reinson, previously Senior Vice President of Development since February, was appointed Chief Operating Officer in late July. April Hayward joined as Executive Vice President of External Affairs and Strategic Partnerships around the same time.
Market Sends a Mixed Message
The share price tells a story of competing pressures. At Friday's close, the stock sat at €1.85, up 1.09 percent on the day — a modest bounce that technical analysts might attribute to oversold conditions, with the Relative Strength Index at 32.3. But the longer-term picture is less forgiving. The stock has shed 20.04 percent over the past month and sits 67.46 percent below its 52-week high of C$5.70, reached as recently as late January. On a yearly basis, the decline stands at 30.26 percent.
Li-FT Power at a turning point? This analysis reveals what investors need to know now.
Analysts have trimmed their outlook accordingly. A consensus of three houses lowered the price target by 7.0 percent on August 3, bringing it to C$10.37 from C$11.15 previously.
The market's caution is understandable: the raise brings fresh capital but also dilution, and the lithium sector broadly remains under pressure. What investors are really watching now are two dates on the calendar — the August 12 closing of the placement and the October regulatory decision in Québec. Both will determine whether Li-FT Power can execute its dual-track strategy of reviving a diamond mine while advancing its lithium portfolio.
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