JOHANNESBURG (miningweekly.com) – ASX-listed Plymouth Minerals has received commitments to raise $6.5-million through the issue of 36.4-million shares at $0.18 apiece, with the funds committed towards the completion of a feasibility study at its San Jose lithium/tin project, in the mining region of Extremadura, Spain.
The company reported on Thursday that the placement had attracted strong interest from new and existing domestic and international institutional investors and would allow for the completion of the study by the fourth quarter of 2018.
The completion of the feasibility study triggers the earning of an additional 25% stake in the near-term San Jose project, bringing Plymouth’s total interest to 75%.
“This equity raising is a key step as Plymouth advances towards lithium production and we are extremely pleased with the level of support from investors.
“The placement brings the benefit of fully funding the company for the next phase of its growth and strengthens our institutional shareholder base, raising the profile of the company both domestically and internationally,” said Plymouth MD Adrian Byass.
He added that the project was “exceptionally” well-positioned to become a key lithium production hub as it had strong lithium mineralisation in an openpit/low strip setting, excellent infrastructure, a development partner in the large Spanish construction company Sacyr and potential for significant production scale, long mine life and high margins.