https://www.miningweekly.com

Pilbara's placement oversubscribed

19th June 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Lithium developer Pilbara Minerals has successfully raised A$80-million in a share placement to help fund the construction of its Pilgangoora lithium/tantalum project, in Western Australia.

The company on Monday said that it had received firm commitments from institutional and sophisticated investors to raise A$53-million through the share placement, with the shares priced at 35c each.

Combined with the A$27-million raised from offtake partner Jiangxi Ganfeng Lithium, the company has now raised a total of A$80-million.

MD and CEO Ken Brinsden told shareholders that the response from investors had been exceptional, with the company electing to increase the placement from the targeted A$77-million, announced earlier this month.

“The institutional placement closed on Friday with bids into the book well above the expected target, a remarkable result considering the current volatile conditions in the resources sector.”

The share placement will consist of two tranches, the first of which will comprise 189.9-million shares to be issued under the company’s placement capacity. The second tranche of about 38.7-million shares will be subject to shareholder approval.

Brinsden said that the recent successful completion of the $100-million bond issue, and the landmark A$80-million equity raising signalled the green light for full scale construction to begin at Pilgangoora.

“The completion of the funding package clears the way for the Pilbara Minerals board to make a final investment decision, which is now expected to be imminent, and with all major environmental and regulatory approvals in place, we can get on with the job of building an important new resource project in Western Australia.”

Meanwhile, a share purchase plan is also expected to raise a further A$15-million, with shareholders able to subscribe for up to A$15 000 of new shares, priced at 35c each.

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION