PERTH (miningweekly.com) – ASX-listed Askari Metals has announced a A$2.6-million capital raise and has announced the acquisition of the Barrow Creek lithium project, in the Northern Territory.
The company on Friday announced that it has completed a share placement, priced at 35c a share, with a one-for-three free attaching listed option, raising A$2.6-million.
“The placement received overwhelming demand from both new and existing investors and was more than ten times oversubscribed, which we see as a strong endorsement of the company and its assets,” said executive director Gino D’Anna.
“We were able to complete the placement at a 15% premium to both the ten-day and 15-day volume weighted average price, which is a significant achievement.”
D’Anna said that the funds raised would be used to accelerate exploration activities at Askari’s existing assets, complete a maiden drilling programme at the Horry copper project, and continue exploration at the Callawa copper project, while also starting exploration at Mt Maguire and Springdale, in New South Wales.
“We will also accelerate our exploration activities at our recently acquired lithium portfolio, including the highly prospective Barrow Creek lithium project and the Yarrie lithium project, in the eastern Pilbara hotspot.”
The Barrow Creek project covers 278 km2 in an area known for hosting significant pegmatites.
D’Anna said that the acquisition of Barrow Creek solidified and strengthened Askari’s entrance into the lithium sector.
“We have now assembled a portfolio of highly attractive lithium exploration projects in areas that have been historically explored and developed and are known to host extensive lithium/tin/tantalum mineralisation, with significant hard rock spodumene lithium deposits having been defined.