PERTH (miningweekly.com) – Lithium miner Pilbara Minerals has completed a A$20-million share placement to China’s largest electric vehicle battery manufacturer Contemporary Amperex Technology (CATL).
The issue of 66.67-million shares, at a price of 30c each, was the first tranche of a larger A$55-million strategic investment by CATL.
The second tranche of the placement, which will raise an additional A$35-million, is subject to shareholder approval, with a general meeting currently scheduled for October 16.
Once the second tranche placement has been completed, CATL will hold an 8.5% interest in Pilbara Minerals.
As part of the previously agreed relationship, CATL has indicated its willingness to provide Pilbara with commercial support by purchasing spodumene concentrate which could become available under its existing offtake agreements, or otherwise, subject to mutual commercial agreement and the parties entering into an offtake agreement.
The two companies have also recognised that Pilbara could benefit from CATL’s technical and strategic expertise and financial capacity to broaden the company’s exposure to a wider range of investors, financiers and other commercial partners.