PERTH (miningweekly.com) – Lithium miner Alliance Mineral Assets has announced plans to raise A$32.5-million through a subscription agreement with fellow-listed Galaxy Resources and with Weier Antriebe und Energietechnik GmBH, a subsidiary of Jiangxi Special Electric Motor Company.
The share placement will consist of 112.5-million share institutional placement and a 50-million conditional share placement, with A$22.5-million being raised from lithium miner Galaxy, with the balance of the placement going to Weier.
Alliance on Thursday said that the placement would providing funding to continue the upgrades to the processing facilities at the Bald Hill lithium and tantalum mine, in Western Australia, and to fund future exploration at the Bald Hill mine.
“Our focus over the past 18 months has been on delivering the Bald Hill mine to production, and we have developed a reputation for production and supply of high-quality spodumene concentrates,” said Alliance MD Mark Calderwood.
“Investment by Jiangxi and Galaxy Resources, who are both experienced participants in the lithium sector, is a recognition of, and testament to our achievements and position in the market.”
Calderwood said the placement would allow Alliance to rapidly advance both the plant upgrade and exploration activities with the aim of upgrading the resource base concurrently with the proposed increase in production rates.
Bald Hill shipped its first spodumene concentrate in May this year, following the successful commissioning and continued ramp-up of the project, which started production in March.
The A$42.2-million Bald Hill project is expected to deliver 155 000 t/y of spodumene concentrate and 260 000 lb/y of tantalum pentoxide over a mine life of 3.6 years.
Galaxy chairperson Martin Rowley said on Thursday that the company has been a minority shareholder in Alliance for some time, and welcomed the opportunity to increase its shareholding.
“Galaxy recognises that the Bald Hill mine produces high quality spodumene concentrates and that the tenements surrounding the existing Bald Hill mine operations hold substantial value potential, that may be unlocked through further targeted exploration and work on resource delineation.”