PERTH (miningweekly.com) – ASX-listed Red Dirt Metals has set a A$55-million capital raise target to fund its lithium growth plans in Western Australia.
The company on Thursday announced plans to undertake a two-tranche share placement of 110-million new shares, priced at 50c each, to raise A$55-million.
The first tranche will consist of 83-million shares, to be issued under Red Dirt’s existing placement capacity, raising an initial A$41.5-million. A second tranche of 27-million shares will be subject to shareholder approval at a meeting scheduled for mid-January, raising a further A$13.5-million.
The offer price of A$0.50 a share represented an 11.5% discount to Red Dirt’s last trading price on November 29, and a 12.36% discount to the company’s five-day volume weighted average share price.
In addition to the share placement, the company will also undertake a share purchase plan, offering existing and eligible shareholders the opportunity to subscribe for up to A$30 000 of additional shares in the company, also at a price of A$0.50 each, to raise a further A$5-million.
Red Dirt executive chairperson David Flanagan said the company was pleased by the strong interest shown in the placement.
“Red Dirt is now very well-funded to undertake a substantial programme of feasibility and development activities combined with accelerated exploration across both the Mt Ida and Yinnetharra lithium projects.
“The funds raised will drive our growth plans for 2023. In the new year, investors can look forward to the completion of a scoping study investigating a direct shipping ore development at Mt Ida, as well as funding expanded exploration activities at Yinnetharra. I am looking forward to an exciting year ahead with the Red Dirt team.”