PERTH (miningweekly.com) – ASX-listed Global Lithium on Wednesday said it had received firm commitments for its 49.5-million share placement to raise A$111.4-million.

The company earlier this week announced a A$121.5-million capital raise, partly to fund the A$60-million acquisition of the Manna lithium project and the remaining 20% interest in lithium rights over tenements held by ASX-listed Breaker Resources.

The capital raise would include an underwritten institutional placement to raise up to A$100.2-million, and a non-underwritten strategic placement to raise a further A$11.1-million.

“We are delighted to have received such strong demand from both our existing strategic and institutional shareholders and look forward to welcoming a number of new high quality domestic and offshore institutions to our register,” said Global Lithium MD Ron Mitchell.

“This raising demonstrates strong support of our conviction in our two high quality lithium projects and management and the board’s exploration and development strategy. We now have the proceeds to see us through to the completion of the Manna feasibility study, which we expect to complete and release to the market in the second half of 2023.”

“Proceeds raised under the Placement also allow us to consolidate ownership of Manna and provide a clearer development pathway for one of the leading emerging lithium projects in Australia.”

Following the completion of the share placement, Global Lithium will also undertake a share purchase plan (SPP), also priced at A$2.25 a share, with the aim of raising a further A$10.1-million. Under the SPP, eligible shareholders will be able to subscribe for up to A$30 000 worth of new shares in the company.

The SPP will open on November 2 and close on November 23.

Breaker on Wednesday confirmed its intention to divest of its remaining stake in Manna and other surrounding tenure, with chairperson and acting CEO Peter Cook saying it was a "win-win" deal for both companies.

“Breaker sells its noncore minority interest and gets a substantial cash injection that leaves the company with a cash balance of approximately A$82-million when the company has a market capitalisation of just A$7-million today. Global Lithium as the 100% owner of Manna and now underlying title holder has the freedom to advance its plans in an unconstrained and unrestricted manner,” said Cook.

“Breaker continues to progress its Lake Roe gold discovery through development studies as well as continues to extend and upgrade the game changing deeper primary lodes within the ore system. The Breaker board’s focus is on determining the best way to develop Lake Roe and create the most wealth for its shareholders. If a standalone development is the best option, this transaction takes us a long way to ensuring it is funded.”