Imagine Lithium Announces Drill Program and Convertible Note Financing

(Low)

(Positive)

Rhea-AI Summary

Imagine Lithium (OTCQB: ARXRF) announced a 2,800 m drill program at its Jackpot lithium project in the Georgia Lake Pegmatite Field, Ontario, and a fully subscribed $3,000,000 private placement of 7.0% secured convertible notes.

The program includes 1,200 m of drilling to expand the Casino Royale zone, which currently hosts 3.1 Mt indicated at 0.85% Li2O and 5.3 Mt inferred at 0.91% Li2O, and 1,600 m of exploration drilling at the newly discovered Ruth Pegmatite. Results are intended to upgrade the company’s NI 43-101 compliant resources on its 27,597 ha land package.

The convertible notes, issued to one arm’s length investor, bear 7.0% annual interest, mature in five years, and are secured by a first-ranking general security interest over all present and after-acquired assets. They are convertible in $500,000 increments at $0.05 per share in year one and $0.10 per share thereafter. The investor will also receive a right of first refusal on any lithium offtake. Closing is subject to TSX Venture Exchange approval and potential finders’ fees.

Positive

$3.0M 7.0% secured convertible note financing, fully subscribed by one investor
2,800 m drill program funded to expand and upgrade Jackpot resources
Existing NI 43-101 resources of 3.1 Mt indicated and 5.3 Mt inferred
Convertible notes carry a defined 5-year maturity and clear conversion terms
Project covers 27,597 ha near highway, power, rail and ports

Negative

Convertible notes are secured by a first-ranking charge over all company assets
Conversion at $0.05–$0.10 per share would dilute existing shareholders if fully exercised
Early repayment requires a 10% premium on principal plus accrued interest
Investor granted lithium offtake right of first refusal, limiting future flexibility

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

07/29/2026 - 07:00 AM

Highlights

Funding from key battery industry Company to explore vast 27,597 Ha land package
1,200m of drilling planned to expand current resources of 3.1 Mt inferred at 1.00% Li₂O at Casino Royale
1,600 m of exploration drilling planned for newly discovered Ruth Pegmatitie

Vancouver, British Columbia--(Newsfile Corp. - July 29, 2026) - IMAGINE LITHIUM INC. (TSXV: ILI) (OTCQB: ARXRF) (the "Company" or "Imagine") is pleased to announce a 2,800 m drill program on the Jackpot Lithium project as well as a private placement offering of 7.0% secured convertible notes (the "Convertible Notes") for gross proceeds of $3,000,000.

The funds will be used for general corporate purposes, to continue advancing their newly discovered Ruth Pegmatite and expansion drilling on their Casino Royale lithium zone. Imagine Lithium's Jackpot lithium project comprises the Ruth Pegmatite claims and the Jackpot Deposit claims in the Georgia Lake Pegmatite Field, approximately 140 km northeast of Thunder Bay, Ontario (Figure 1). Total resources on the 27,597 ha land package include 3.1 Mt indicated at 0.85% Li₂O for 26.2 kt of Li₂O and 5.3 Mt inferred at 0.91% Li₂O for 49.5 kt of Li₂O (September 2024 - Imagine Lithium).

The results of this drill program will be used to upgrade Imagine Lithium's NI 43-101 compliant resources.

Figure 1: Jackpot Project located next to Trans-Canada Highway, power, port, railroad, and workforce.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2962/307042_504fb856d404193b_001full.jpg

The private placement is fully-subscribed with one arm's length investor. Convertible Notes will bear interest at 7.0% per annum, and will mature 5 years from their issuance. The Company may repay all or a portion of the principal amount owing under the Convertible Notes at any time prior to maturity with 90 days prior notice, but at a premium of 10% of the principal amount owing plus any accrued and unpaid interest. The principal amount owing under each Convertible Note will be convertible into common shares, in multiples of $500,000 of the principal amount, at a conversion price of $0.05 per share in the first year, and for each year thereafter at a conversion price of $0.10 per share. The indebtedness owing under the Convertible Notes will be secured by a first ranking general security interest over all of the present and after-acquired assets of the Company.

Simone Suen, President of Imagine, commented: "This funding opportunity represents a strategic investment from a key player in the battery industry and will be used to continue to develop the new and existing lithium resources on the property and add tonnes to the Jackpot Lithium project. We are encouraged that the planned drilling will add to our resource inventory, putting Imagine in an excellent position to build upon our significant resources on the Project. Nearby infrastructure, ports and a skilled workforce highlight the near-term production potential of the Georgia Lake deposits."

Concurrent with the completion of the private placement, the investor will also be granted a right of first refusal with respect to any offtake arrangements regarding lithium produced, if any, by or on behalf of the Company from any mineral interest owned by the Company.

Finders' fees may be payable on the private placement, subject to the policies of the TSX Venture Exchange. The private placement is also subject to the Company receiving all necessary prior approvals from the TSX Venture Exchange.

Qualified Person

Jason Arnold, P.Geo., President of DCX Geological Consulting Inc. reviewed and approved the technical content of this news release. Jason is a consultant for the company and is not an Independent Qualified Person as defined by the National Instrument 43-101 due to their position as a Director of the Company.

About Imagine Lithium Inc.

Imagine is a junior mining exploration company focused on seeking and acquiring world-class mineral projects. The company holds the Jackpot lithium property located in the Georgia Lake area about 140 km NNE of Thunder Bay, Ontario, is approximately 12 km by road from the Trans-Canada Highway (Hwy 11), and is in proximity to sources of power, railroads, and ports. The Jackpot Property consists of 322 mineral claims covering 27,597 hectares. The Property contains NI 43-101 compliant Mineral Resources of 3.1 Mt grading 0.85% Li₂O in the indicated category and 5.3 Mt grading 0.91% Li₂O in the inferred category, as well as several other known pegmatite showings.

ON BEHALF OF THE BOARD
Simone Sze Man Suen, President

FOR FURTHER INFORMATION, PLEASE CONTACT:
Telephone: +1-807-355-5405
Toll Free: 1-888-945-4770

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedarplus.ca).

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307042

FAQ

What did Imagine Lithium (ARXRF) announce in its July 29, 2026 news release?

Imagine Lithium announced a 2,800 m drill program at its Jackpot lithium project and a fully subscribed $3,000,000 offering of 7.0% secured convertible notes. According to Imagine Lithium, the funds will advance the Ruth Pegmatite, Casino Royale zone and general corporate purposes.

What are the terms of Imagine Lithium’s $3 million 7% secured convertible notes (ARXRF)?

The notes pay 7.0% annual interest, mature five years from issuance and are secured by a first-ranking general security interest. According to Imagine Lithium, they convert in $500,000 increments at $0.05 per share in year one and $0.10 per share thereafter.

How much drilling is planned in Imagine Lithium’s 2026 Jackpot program for ARXRF shareholders?

Imagine Lithium plans 2,800 m of drilling at Jackpot, including 1,200 m at the Casino Royale lithium zone and 1,600 m at the Ruth Pegmatite. According to Imagine Lithium, results will be used to upgrade its NI 43-101 compliant resources.

What lithium resources does Imagine Lithium report at the Jackpot project for ARXRF?

According to Imagine Lithium, the Jackpot property hosts 3.1 Mt indicated grading 0.85% Li2O and 5.3 Mt inferred grading 0.91% Li2O, totaling 26.2 kt and 49.5 kt of Li2O respectively. These NI 43-101 resources cover a 27,597 hectare land package.

How could Imagine Lithium’s convertible note financing affect ARXRF shareholders?

If converted, the $3,000,000 notes would issue shares at $0.05 in year one and $0.10 thereafter, increasing the share count. According to Imagine Lithium, the notes are secured by a first-ranking charge over all present and after-acquired assets.

What offtake rights did the investor receive in Imagine Lithium’s ARXRF financing?

Concurrent with the financing, the investor received a right of first refusal on any lithium offtake arrangements from any mineral interest owned by the company. According to Imagine Lithium, this applies to future lithium produced, if any, by or on its behalf.

Are there any conditions or fees on closing Imagine Lithium’s ARXRF private placement?

Closing the private placement is subject to receiving all necessary TSX Venture Exchange approvals, and finders’ fees may be payable. According to Imagine Lithium, the financing is fully subscribed by one arm’s length investor, pending these regulatory approvals.