Relentless rise of lithium prices and recent bounce in cobalt and nickel put pressure on electric vehicle manufacturers.

The funds will provide capital for what the company is calling the "most significant" exploration program ever initiated on its projects in northern Canada.

The company's 2022 program included 70 drill holes and over 23,000 metres of diamond drilling that began in June and finished in October.

Prystai will succeed Jonathan Price, who was appointed the chief executive officer earlier this year following the departure of company veteran Don Lindsay.

The company will use the proceeds of the offering primarily to complete a prefeasibility study.

Drill hole JT22-152 returned 120.5 metres at 18.76 g/t gold, 0.55% copper, 3.86% zinc, 0.93% lead and 6 g/t silver (for 22.1 g/t AuEq).

The acquired portfolio includes one producing gold royalty on First Majestic’s La Encantada gold operation, four development silver royalties and three advanced exploration silver royalties.

The fund’s objective is to spur innovation for a better Canada by providing funding for large projects and national innovation ecosystems.