Lithium Australia NL (ASX:LIT) will use $2.747 million raised in a rights issue to progress its integrated lithium strategy which encompasses lithium raw materials, chemicals, batteries and battery recycling.
The one for six rights issue closed on June 28, 2019, and applications have been received for more than 45.792 million shares from shareholders and new investors.
LIT is pleased with the outcome and has thanked shareholders for their support in difficult market conditions.
One free option for every two new shares
With every two new shares, investors receive one free listed option with exercise price of 12 cents and term of two years.
The rights issue provided eligible shareholders an opportunity to take up new shares proportional to their shareholding or partly paid shareholding and avoid dilution.
It has been partially underwritten to $1.5 million by CPS Capital Group Pty Ltd.
Funds raised will be used for:
- Lithium raw materials including exploration on Youanmi and Medcalf;
- Lithium chemicals including development of SiLeach® LieNA® and L-Max®;
- Lithium batteries including VSPC pilot plant operations and DLG alliance; and
- Lithium battery recycling including the Envirostream transaction.
The company plans to begin drilling shortly for lithium and vanadium at its Youanmi project area in Western Australia.
Fieldwork earlier this year discovered extensive mineralisation with rock-chips grading 4.2% lithium oxide and anomalous caesium and tantalum values.
Up to 3,000 metres is planned to be drilled to evaluate the potential for an economic hard-rock lithium deposit.
At the same time, a drilling program will also be undertaken within the defined vanadium resource to further evaluate the high-grade sections.
LIT has recently increased its stake in battery recycler Envirostream Australia Pty Ltd to 11.76% through a further equity subscription of $100,000.
Victorian-based Envirostream operates Australia’s only battery recycling facility.
The lithium-ion battery shredding facility produces powder containing critical metals that are exported for refining.