PERTH (miningweekly.com) – Junior developer Lithium Australia announced on Monday that it would raise about A$6-million in a share placement to institutional and sophisticated investors to fund project development and working capital.
Shares would be priced at 14c each. The A$6-million raising would include a A$4-million funding by Lanstead Capital, which would take up more than 28.5-million of the shares on issue.
Following the investment, Lanstead would hold a 15.9% interest in Lithium Australia.
Lithium Australia MD Adrian Griffin said on Monday that the company was pleased with the funding opportunity, particularly considering the recent market turmoil.
“We welcome Lanstead as our first institutional shareholder and applaud the confidence Lanstead has in our strategy to use disruptive technology to surpass the outcomes being achieved by the more conventional lithium producers.”
Griffin said that the capability of Lithium Australia’s plan has been expanded with the recent successful production of lithium hydroxide, giving the company’s processing package a potential paradigm shift in production revenue.
Previously known as Cobre Montana, Lithium Australia has a number of strategic relationships with mineral companies holding lithium projects around the world, including the Pilgangoora project and the Coolgardie projects, both in Western Australia.