PERTH (miningweekly.com) – Lithium miner Altura Mining has secured a A$305-million financing package to strengthen its balance sheet.
The ASX-listed company on Friday told shareholders that it had executed new lending agreements with current lenders to extend the maturity of the existing $161-million loan facility by three years until August 2023, and has completed an equity raise of A$11.2-million through a share placement to institutional and sophisticated investors.
Altura will place 224-million new shares, at a price of 5c, representing a 9.42% discount to the company’s 30-day volume weighted average share price. The placement will be conducted under Altura’s existing capacity, and will not require shareholder approval.
The company last year said there was a risk to its going concern status if it failed to refinance the loan and meet sales and production forecasts.
Furthermore, Altura said it had also secured a standby equity commitment from US-based investment group LDA Capital for an additional $50-million in equity finance, which can be drawn at Altura’s discretion.
The equity finance will have a 36-month term, and would see Altura issue shares to LDA to receive the funds. The put option will be priced at 90% of the 15-day volume weighted average price of Altura’s shares following the exercise of the option, or a minimum price set by Altura, whichever is higher.
The number of shares subject to the put option for any period would be a maximum of ten times the average daily number of shares traded by Altura on the ASX during the 15-day period before its exercise.
Subject to shareholder approval, Altura will also issue LDA with 74.4-million unlisted options, with a three-year exercisable term, at 150% of the 30-day volume weighted average share price of Altura’s shares following its re-quotation on Friday.
“We are pleased by the support shown by our existing lenders, their belief in the Altura lithium project, management and the global lithium sector,” said Altura MD James Brown.
“The combined sum of the financing package gives us considerable balance sheet strength and working capital headroom so we can continue to push through this period of market weakness.”