Piedmont Lithium Ltd (ASX:PLL) has successfully completed a bookbuild for a placement of shares at $0.16 each to institutional and sophisticated investors to raise $16 million.
The proceeds from the placement will be used to expedite the development of the company’s Piedmont Lithium Project located in the world-class Carolina Tin-Spodumene Belt (TSB) in the U.S.
The company is also planning to secure additional land within the TSB, complete additional drilling and technical studies for the project.
Keith Phillips, president and chief executive officer, commented: “We are extremely pleased with the overwhelming demand and strong institutional support received for the placement which significantly enhances the nature of our register and reflects the quality of our Piedmont Lithium Project.
“The funds will allow us to accelerate our project development plans for what we believe to be the world’s most strategically located lithium project.”
Project background
The Piedmont lithium project is located in an infrastructure rich region of North Carolina.
The Carolina Tin-Spodumene Belt was the world’s primary source for lithium from the 1950's to the 1980's, and hosts the country's only two historic spodumene mines.
Piedmont's land holdings are less than 25 kilometres from the only two large lithium processing facilities in the U.S. - making it one of the world’s best-located lithium projects.
Recent assays from the company’s Phase 2 drill program at the project has confirmed eight mineralised trends totalling circa four kilometres of strike length.
The highlights include 21.3 metres of mineralisation across four pegmatites, with high grade zones of 6.7 metres at 1.32% lithium, 4.5 metres at 1.24% lithium and 1.5 metres at 1.52% lithium.
Next steps
Piedmont has already established relationships with leading technical and marketing consultants in the lithium sector.
The company is planning to accelerate feasibility studies with regards to metallurgical, mine development and off-take plans.
Piedmont is aiming for an exploration target in December 2017 and a maiden resource in early-2018.
Earlier this month, Piedmont became the first pure lithium play to join the NASDAQ.
READ NOW: Piedmont Lithium begins trading on Nasdaq
This provides a larger pool of investors who will now be able to gain exposure to the Piedmont lithium project.
