PERTH (miningweekly.com) – ASX-listed Global Geoscience was hoping to raise A$53-million through a fully underwritten institutional share placement to fully fund its Rhyolite Ridge lithium/boron project, in the US, through to a mine development decision in late 2019.
The company said on Wednesday that it will place 130-million ordinary shares at a price of 41c a share. The issue price represented a 7.9% discount to the company’s closing price on June 12, and a 10.9% discount to its ten-day volume weighted average price.
The shares will be issued under Global’s 25% placement capacity.
Global MD Bernard Rowe told shareholders that the equity raising would increase the company’s cash balance to greater than A$85-million, and would fund the completion of the Rhyolite Ridge prefeasibility study, pilot plant programme and the definitive feasibility study over the next two years, as well as resource extension drilling and procurement of critical long-lead items, along with general working capital.
The company recently unveiled development plans for the Rhyolite Ridge project, which has been designed with a total surface disturbance footprint of less than one square mile, allowing the Federal Bureau of Land Management to consider the project for an Environmental Assessment, rather than an Environmental Impact Statement, which would be more time consuming.