PERTH (miningweekly.com) – Lithium producer Altura Mining is hoping to raise A$28-million through a share placement and share purchase plan (SPP) to underpin the production ramp-up at its Altura lithium project, in Western Australia.

Some 184-million shares will be placed to institutional and sophisticated investors, priced at 13c each, to raise an initial A$23-million. The placement price represents an 18.8% discount to the 30-day volume-weighted average price of Altura shares.

The share placement also includes one free attaching option for every two shares subscribed for, exercisable at 20c a share with an expiry date of the end of February 2022.

In addition, Altura is launching an SPP to raise a maximum of A$5-million, allowing eligible shareholders to subscribe for up to A$15 000 worth of new shares, at the same issue price.

A maximum of 38.46-million shares will be on offer under the SPP, with one new option also issued for every two new shares purchased.

“This capital raising provides working capital strength for this final push in the ramp-up phase,” said Altura MD James Brown.

“The most recent modifications we’ve made to the plant have had a significant impact on performance and we are now consistently achieving approximately 70% of nameplate production capacity. We also continue to be delighted with the product quality from the plant, which is meeting or exceeding customer expectations.”

Brown said that the company was confident that it was close to achieving steady-state production, and could then focus on ensuring the plant was working as reliably and efficiently as possible while Altura continues to work towards its nameplate capacity of 220 000 t/y, which should be achieved over the coming months.

Once the project has achieved its nameplate capacity, Altura is expected to make a final investment decision on the Stage 2 expansion, which would increase production to 440 000 t/y.