Bradda Head Lithium is converting loans made by Galloway and Promaco into equity, putting the North America-focused lithium developer into a debt-free position. It is also raising funds through the exercise of options, with Galloway participating in an accompanying subscription.
The loan conversion covers principal of $1.61 million plus accrued interest of $262,055, totalling $1.87 million. And, an option exercise, involving Promaco, Executive Chair Ian Stalker and other holders, will raise gross proceeds of £113,750.
Proceeds will fund the phase 3 drilling programme at the Whistlejacket project in Arizona, held under a joint venture with Rio Tinto's Kennecott Exploration, alongside further drilling at the San Domingo pegmatite project and continued work toward NI 43-101 technical reports across the company's Arizona hard rock portfolio.
"The funds we are proposing to raise will enable us to further accelerate programmes at both Whistlejacket and our San Domingo pegmatite project", Stalker said, adding that the work is designed to support maiden mineral resource estimates and push toward a production decision in early 2027.
The Whistlejacket project spans nine Arizona State Land Department exploration permits covering 4,486 hectares, with prior drilling by Kennecott intersecting lithium mineralisation in all 19 holes drilled, including 51 metres at 1.11% Li2O.
The fundraising is intended to meet Bradda Head's first-year Phase 1 earn-in obligations under the joint venture.
News Intelligence what this means for the company
Bradda Head has eliminated $1.87 million in debt by converting related-party loans to equity and raised £113,750 through option exercises, funding phase 3 drilling at Whistlejacket, its Arizona hard-rock lithium project operated under a joint venture with Rio Tinto's Kennecott Exploration. The move clears the balance sheet ahead of a critical earn-in phase and positions the company to advance toward maiden resource estimates and a production decision targeted for early 2027.
Prior drilling by Kennecott at Whistlejacket intersected lithium mineralisation in all 19 holes, including 51 metres at 1.11% Li₂O, establishing a material exploration foundation; debt elimination and secured funding now remove near-term capital risk and allow the company to execute the work needed to test that potential at scale.
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