JOHANNESBURG (miningweekly.com) – Pure-play lithium explorer Lithium International has raised A$15-million in an institutional placement, which allows the company to complete its earn-in in the Maricunga joint venture (JV) and to start preconstruction works.
Lithium International, which is listed on the ASX, will have a 50% interest in the Maricunga lithium brine project, which it touts as Chile’s next lithium mine.
The placement was undertaken at an issue price of A$0.55 a share, representing a 15.4% discount to the last closing price of Lithium Power shares on Friday and a 9.7% discount to the ten-day volume-weighted average price of its shares up to November 17.
In conjunction with the fully underwritten placement, Lithium Power and Canaccord entered into an underwriting agreement with regard to the exercise of all the listed options. These have now been exercised at A$0.55 a share and will expire on November 24. There are about 37.53-million options on issue, which will raise about A$20.6-million.
"We are pleased to announce the successful capital raise via an institutional placement of A$15-million along with the full underwriting of LPIO options for the value of A$20.6-million. The calibre of new investors on our share register provides the company with a strong support base ahead of the Maricunga project development decision,” said Lithium Power CEO Martin Holland.