PERTH (miningweekly.com) – Lithium miner Altura Mining will raise A$21.5-million through a non-renouceable rights issue to fund exploration in the Pilbara and on lifting production at its Pilgangoora project, in Western Australia.
The non-renounceable entitlement offer will be conducted on the basis of two new fully paid ordinary shares for every 13 shares held, at an issue price of 6c a share.
The issue price represents a 10.04% discount to Altura’s five-day and ten-day volume weighted average share price of 6.67c, the ASX-listed company said on Thursday.
“Altura has made excellent progress with the construction and commissioning of the Pilgangoora project. We are now approaching full production rates, driving down unit operating costs and generating substantial cash operating margins on sales,” said MD James Brown.
“We have binding offtake agreements in place with multiple large lithium converters and battery manufacturers and we are continuing to make regular shipments of high-quality spodumene concentrate to our customers.
“We are now fine-tuning aspects of the plant to increase production rates and operating efficiencies and this entitlement offer will provide the necessary working capital for those important improvements.”
Brown said that the capital raised would also provide Altura with the funding to explore fellow-listed Sayona Mining’s tenement package in the Pilbara.
The two companies recently struck an earn-in agreement under which Altura would spend A$1.5-million on exploration over the next three years, to earn a 51% interest in the lithium project portfolio.
The tenement package under the earn-in agreement consists of some 1 806 km2 and is in close proximity to Altura’s own tenements, as well as a number of other spodumene deposits.