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Global Geoscience raises $53 million in fully underwritten placement

Shares in the company have increased over 200% in past 9 months.
spectacles on a white page that says raising capital
Citigroup is acting as sole lead manager, bookrunner and underwriter

Global Geoscience Ltd (ASX:GSC) has secured $53 million through a fully underwritten share placement priced at 41 cents per share.

Proceeds will fully fund the flagship Rhyolite Ridge Lithium-Boron Project in Nevada through to a mine development decision by late 2019.

Shares in the company are currently in a trading halt while the placement is completed.

The halt will be lifted and shares will recommence trading tomorrow morning.

Low-cost producer of lithium and boron

Global Geoscience’s managing director Bernard Rowe said: “In recent months, Global has made significant steps to de-risk the ongoing development of the Rhyolite Ridge Lithium-Boron Project.

“The trade-off studies we recently announced highlight the project’s very strong potential to be a major, low-cost producer of lithium and boron in an environmentally sustainable manner.

“The equity raising today provides funding for further drilling to test the strategic scale of the lithium-boron mineralisation within our claims and also put the company in a strong position to negotiate development funding with a wide range of parties.”

Share price up over 200% in past 9 months

Rowe added: “We are also delighted by Global’s strong share price performance over the last nine months, up over 200%, and its recent inclusion into the ASX300 index.

“We are pleased with the continued support shown by our existing institutional shareholders for the ongoing development of the project, and we would like to take the opportunity to welcome new investors to our register.”

Cash position boosted to over $85 million

The share placement increases the company’s cash balance to greater than $85 million and will fund a number of initiatives including completion of the pre-feasibility study.

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