Libra Energy Materials plans C$725K Quebec exploration placement

Libra Energy Materials Inc. CNSXLIBR OTCMKTSLIBRF said Friday it plans to raise C$725,000 in a flow-through private placement led by Quebec investors SIDEX and NQ Mining Investment. If completed, the proposed sale would bring gross proceeds from Libra's two September offerings to about C$2.61 million, after a separate C$1.885 million placement closed Thursday.

Shares rose 10 per cent to C$0.11 on the CSE at 4 p.m. EDT Friday, according to the CNSXLIBR quote.

The new placement calls for five million critical mineral exploration tax credit flow-through common shares at C$0.145 apiece. The price is a 45 per cent premium to the Sept. 24 CSE close of C$0.10 on the CNSXLIBR quote at 4 p.m. EDT Friday.

Libra said the gross proceeds will fund qualifying exploration expenditures on its Quebec properties, including Cisco West and Obamska in the Eeyou Istchee James Bay region. The sale remains subject to Canadian Securities Exchange approval.

A full subscription would take Libra's share count to about 92.4 million from the 87,396,448 shares shown on the CSE's Sept. 25 listing page, assuming no other issuance. The five million proposed shares would make up about 5.4 per cent of the enlarged total.

SIDEX is an investment fund established by the Quebec government and the Fonds de solidarité FTQ, while NQ Mining Investment is a regional fund based in Matagami. Libra named both as leaders of the financing but did not disclose how much either has committed, leaving their individual subscriptions unknown before closing.

"No insiders are expected to participate in the Offering," Libra said in its Sept. 25 release.

Libra said it will renounce the eligible exploration expenses to subscribers with an effective date no later than Dec. 31, 2026. It also said the shares qualify for the federal Critical Mineral Exploration Tax Credit.

The release calls Cisco West and Obamska its flagship Canadian lithium projects. Libra gave no breakdown of how the proposed funds would be spent at either property.

The Sept. 24 closing release put gross proceeds from that earlier placement at C$1,885,399.95. It issued 14,844,000 regular shares at C$0.10.

The earlier financing also issued 3,084,615 flow-through shares at C$0.13, according to the company. Those shares are part of a completed raise, whereas the C$725,000 announced Friday remains conditional on closing.

The new release does not set a drilling budget or give a fieldwork start date. It says cash finder's fees are payable to certain arm's-length finders, subject to CSE approval, without specifying an amount.

The new shares carry a statutory hold of four months and one day after closing.

Libra expects to close the placement on or about Sept. 29.