Sign up Australia
Proactive Investors - Run By Investors For Investors

Lithium Australia to extract value from IPO as shares hit 12-month highs

Lithium Australia will be a substantial shareholder in BlackEarth Minerals.
Lithium Australia to extract value from IPO as shares hit 12-month highs
Lithium Australia shares have doubled over the past two months

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."

View full LIT profile View Profile

Lithium Australia NL Timeline

Related Articles

Trio undertaking survey work at Rockford project
October 09 2018
The company is seeking to emulate Independence Group’s successes at Nova-Bollinger and Andromeda.
Old iron ore workings at Grants Basin
October 16 2018
The 3,500-metre drilling program is funded by SIMEC Mining and forms part of due diligence.
Workers underground at Prieska
October 25 2018
The company hopes to drill and define satellite deposits near the old mine.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use