Photo by: Bloomberg
PERTH (miningweekly.com) – Takeover target Lepidico is hoping to raise up to A$5.6-million to start definitive feasibility studies for the Phase 1 L-Max plant.
Lepidico earlier this month signed a binding term sheet with Grupo Mota to spend a minimum of €250 000 on exploration and drilling at Alvarrões mine, in Portugal, over an 18-month period. Exploration will include the evaluation of material from waste dumps, tailings and mine spill.
Lepidico will aim to delineate a Joint Ore Reserves Committee-compliant mineral resource as potential feed for future L-Max processing facilities.
The company on Thursday said it was hoping to raise the funds through a nonrenounceable entitlement offer, offering one new share for every four shares held, at a price of 1.3c each.
Some 437.6-million shares will be offered.
The offer price represents a 13% discount to Lepidico’s last trading share price, and a 10% discount to the company’s 30-day volume weighted average share price.
Meanwhile, Lepidico has urged shareholders to reject a takeover offer from fellow-listed Lithium Australia, saying the offer was inadequate.
Lithium Australia was offering one of its own shares for every 13.25 Lepidico shares held.