PERTH (miningweekly.com) – Junior explorer Liontown Resources would raise A$1.3-million through a share placement to progress exploration and evaluation at its lithium projects.
The company said on Tuesday that it would place about 87.1-million shares, at a price of 1.5c each, to sophisticated and professional investors.
The placement would be made under the company’s existing capacity, and would not require shareholder approval.
Liontown told shareholders that the funds raised would be used to advance exploration and drilling activities at the Bynoe lithium project, in the Northern Territory, the Mohanga lithium project, in Tanzania, and for general working purposes.
“We are pleased the capital raising received strong support from a number of high-quality investors that both broadens our shareholder base and enables us to commence drilling at the Bynoe and Mohanga projects,” said Liontown chairperson Tim Goyder.
“Exploration programmes are currently being designed and it is anticipated that drilling will start in May-June.”
In addition to the share placement, Liontown was hoping to raise another A$40 000 through a share placement to nonexecutive director Craig Williams.
Subject to shareholder approval, Williams would be issued with more than 2.6-million shares in the company, priced at 1.5c each.