Lithium Australia NL (ASX:LIT) shares are currently trading at 12-month highs of $0.245, as investors put their support behind the company's strategy as a dedicated developer of disruptive lithium extraction technologies.
The company is also set to create value from a non-core asset, selling its graphite assets into the pending IPO of BlackEarth Minerals NL.
BlackEarth has lodged a prospectus to raise a minimum of $4.5 million and a maximum of $6 million.
Allocation to Lithium Australia shareholders
There have been 5 million $0.20 shares allocated and made available to those Lithium Australia shareholders registered on the 14th November 2017, collectively on a priority application basis.
The offer includes for every two shares, a partly paid share will be allocated, paid to $0.0001, unpaid to $0.2499.
The minimum subscription is 10,000 shares valued at $2000.
Adrian Griffin, managing director for Lithium Australia, commented:
"Lithium Australia has maintained a policy of creating real value for shareholders: take a look at MetalsTech Ltd (ASX:MTC) which showed a 30% gain on IPO in February 2017 and is currently trading at a premium to its IPO price of $0.20.
"The BlackEarth Priority Offer gives LIT shareholders a priority entitlement to gain exposure to energy metals on the anode side of the battery: graphite is an important mineral for the continuing battery revolution."
"LIT will be a substantial shareholder in BEM, further strengthening the LIT balance sheet."