PERTH (miningweekly.com) – Junior Resolution Minerals will raise A$1.03-million in a strategic placement to US and Australian investors, to fund the acquisition of a 5% stake in North America-focused lithium explorer Midwest Lithium.

The ASX-listed company on Tuesday announced that it would place 103-million shares, at a price of 0.1c each, representing a 2.3% discount to the company’s 15-day volume weighted average share price, and a 3% discount to its five-day volume weighted average share price.

An additional 10-million shares will be issued at the same price, subject to shareholder approval.

“The company is very excited to be able to take this opportunity to invest in a quality hard-rock lithium asset in a top mining jurisdiction. Along with the upcoming drilling programme at the Wollogorang copper project, it is another step in advancing our new energy metals strategy and creating tangible value for Resolution Minerals shareholders,” said MD Steve Groves.

“We are also really encouraged by the support shown by the US- and Australia-based investors who share our long-term vision for the company.”

The bulk of the funds will be used to make a near 5% equity investment in Midwest Lithium, with properties in the Black Hills district of South Dakota. The investment is being undertaken in Midwest Lithium as part of their larger capital raising of $2-million, which is expected to be sufficient to allow the US company to complete further tenement acquisition costs, and continue exploration programmes, permitting and working capital.

Midwest shareholders approved Resolution Minerals’ acquisition of an interest in the company.

Mineral Resources told shareholders on Tuesday that this investment underpins the company’s commitment to growing its exposure to new energy metals and assets and gives shareholders early exposure to an underexplored known spodumene-pegmatite lithium field in an area with significant past spodumene production.