Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Independence Group (IGO) has successfully completed the institutional component of its entitlement offer and share placement to partly fund its deal with lithium producer Tianqi Lithium Corporation.
IGO on Friday announced that the share placement had raised some A$446-million, while the institutional entitlement offer had raised a further A$261-million, at an offer price of A$4.60 a share.
Some 154-million new shares were subscribed for under the placement and the 1-for-8.5 institutional entitlement offer, with the shares to settle on December 17, and to start trading on December 18.
Under the retail component of the entitlement offer, eligible shareholders would be allowed to subscribe for one new share for every 8.5 shares already held, in the hopes of raising a further A$58-million.
The retail entitlement offer will open on December 15 and close on January 15.
All the funds raised will go towards IGO’s A$1.9-billion investment in Tianqi Lithium Corporation to acquire a significant stake in the Greenbushes lithium mining and processing operation, as well as in the Kwinana lithium hydroxide plant, both in Western Australia.
IGO will acquire a 49% interest in Tianqi Lithium Energy Australia through a share subscription, giving the company a 24.99% interest in the Greenbushes operation and a 49% interest in the Kwinana plant.
“This is a transformational transaction for IGO and we are very pleased with the strong level of support from our institutional shareholders,” said IGO MD and CEO Peter Bradford.
“The transaction positions IGO as a globally relevant supplier of clean energy metals and we look forward to working with Tianqi to build a leading global lithium business for our shareholders.”