Strike spin-out raises A$9m

4th May 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Strike Resources on Tuesday announced that the demerged Lithium Energy had raised A$9-million in its initial public offering (IPO).

Strike in March this year announced plans to spin out its lithium and graphite assets through listing its subsidiary Lithium Energy on the ASX. At completion of the spin-out, Strike would hold 34.4-million shares in Lithium Energy, amounting to a 43% shareholding.

Lithium Energy owns a 90% interest in the Solaroz lithium project, in Argentina, and the Burke graphite project, in Queensland. Solaroz is adjacent to the mineral concession being developed by ASX- and TSX-listed lithium miner Orocobre, and TSX- and NYSE-listed Lithium Americas Corporation.

Strike on Tuesday said that the IPO had been fully underwritten and significantly oversubscribed.

Lithium Energy is now working towards a listing on the ASX, which is anticipated in late May.