PERTH (miningweekly.com) – ASX-listed Mali Lithium has raised A$9.8-million in a heavily oversubscribed share purchase plan (SPP).
The company in September announced plans for a A$6-million SPP, as part of a greater A$70-million capital raise to fund the acquisition of the Morila gold mine from majors Barrick and AngloGold.
An initial 47.6-million shares were placed under Mali Lithium’s initial placement capacity, priced at 16c a share to raise A$7.6-million, while a second tranche placement of some 354.2-million shares would be subject to shareholder approval at a meeting expected in late October.
The company on Friday revealed that the SPP, which had also been priced at 16c a share and allowed shareholders to subscribe for up to A$30 000 of additional shares, had been heavily oversubscribed, raising A$9.83-million.
“We are truly humbled by the support of our shareholders. To have received such an outstanding response is a fantastic endorsement of our strategy to create shareholder wealth through the rapid scale-up of operations at our recently acquired Morila gold mine,” said Mali Lithium executive chairperson Dr Alistair Cowden.
“More so, this massive vote of confidence from our existing shareholders gives credence to our vision to become a midtier gold producer.”
Cowden said that along with the placement proceeds, the company had now raised A$74-million, with a significant portion of the funding to be deployed to rapidly scale-up gold assets, including the imminent deployment of drill rigs.