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Lithium Power to raise A$12.4m

23rd August 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Chile-focused lithium developer Lithium Power will raise A$12.4-million through a share placement to sophisticated and institutional investors.

The ASX-listed company on Monday unveiled that it would place some 47.69-million shares, at a price of 26c each, with the offer price representing a 10.3% discount to the company’s last closing price, and a 12.9% discount to its five-day volume weighted average share price.

Funds raised in the placement will be used for the development of the Maricunga lithium brine project, and for renewed exploration programmes at Lithium Power’s Western Australian operations, including its Greenbushes project and other targets.

“The successful completion of the A$12.4-million placement is important for a number of reasons, not the least being the caliber of new investors now on our share register. The ongoing support of existing shareholders adds considerably to our strong base ahead of the Maricunga project development decision,” said CEO Cristobal Garcia-Huidobro.

“We are working with a number of large, international institutions to partner us in the final development of Maricunga. The quality of these potential partners is very encouraging.”

A 2019 definitive feasibility study into the project estimated that Maricunga could produce 20 000 t/y of lithium carbonate equivalent over a mine life of 20 years. The project would require a capital investment of $563-million, and would have a net present value of $1.3-billion before tax, and an internal rate of return of 29.8%.

Edited by Creamer Media Reporter

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