PERTH (miningweekly.com) – ASX-listed Arizona Lithium has announced a A$32.5-million capital raise to fast-track the development of its Big Sandy project, in the US.
The company on Thursday said it had received firm commitments for the placement of 185.6-million shares, at a price of 12.5c each, with the shares to be placed under its existing placement capacity.
The proceeds will be applied to the design and construction of the research facility for the Big Sandy lithium project, land acquisition, exploration drilling and the immediate commencement of prefeasibility study (PFS), once the scoping study has concluded.
“We are very pleased to have received firm commitments to raise A$32.5-million with the proceeds to be used to significantly expedite the development of Big Sandy, as we continue to progress towards lithium production at the project,” said Arizona Lithium MD Paul Lloyd.
“The funds will be used to fast-track the metallurgical test work, including the preparation of a processing flow sheet and design of a research facility, which all represent important milestones in the development of the project.
“Importantly, the proceeds will also be used for additional exploration drilling with the aim of further expanding the resource at Big Sandy, as we concurrently continue with the sustainable development of the project. With only 4% of the total project area drilled to date, the planned drilling programme represents a significant opportunity to create additional shareholder value.”
Arizona Lithium in February launched a scoping study into the Big Sandy project.