Photo by: Bloombeg
PERTH (miningweekly.com) – Metals developer Pilbara Minerals has raised A$12-million through a share placement, to fund a definitive feasibility study at its Pilgangaroo lithium-tantalum project, in Western Australia.
The ASX-listed company reported on Tuesday that it would place some 52.2-million shares, priced at 23c each, to raise the funds. The shares would be placed to institutional and sophisticated investors in Australia and Asia.
The shares would be placed under the company’s existing capacity, and would not require shareholder approval.
“This is a major milestone for the company and a significant endorsement of our key project at Pilgangaroo and our strategy to fast-track its development,” said Pilbara chairperson Tony Leibowitz.
“This raising sees the introduction of a number of important institutional shareholders to our register,” he added.
The proceeds from the placement would be used to fund ongoing drilling and feasibility work associated with delivering both the prefeasibility study and definitive feasibility study for the Pilgangoora project.
A further resource increase at the project area was expected in February next year, incorporating results from the recent in-fill and extensional drilling programme, with both the feasibility studies also due in 2016.
“The next 12 months is shaping up to be a very exciting time for Pilbara Minerals, as feasibility studies are finalised and we move rapidly towards financing and development of a world-class spodumene project at Pilgangoora, transforming Pilbara into a major player in the exciting and rapidly growing lithium sector.”