logo-loader
viewAlita Resources Ltd

Alita Resources substantial shareholder lifts interest in lithium and tantalum producer to 9.06%

German-based generator and motor producing company Weir Antriebe participated in a conditional placement.

Shareholder image with charts
Weir Antriebe is a subsidiary of China’s Jiangxi Special Electric Motor Co

Alita Resources Ltd (ASX:A40) (SGX:40F) substantial shareholder Weier Antriebe und Energietechnik GmbH, a subsidiary of China-based Jiangxi Special Electric Motor Co, has increased its holding in the company to 9.06%.

The German-based investor participated in a conditional placement by purchasing an additional 50 million shares with total value of $10 million.

Jiangte’s generator and motor producing subsidiary Weir Antriebe now holds more than 133.78 million shares.

READ: Alliance Mineral Assets Ltd enters strategic placements with Galaxy and Jiangte to raise $32.5 million

In May Alita, then called Alliance Mineral Assets Ltd, executed separate subscription agreements with Weir Antriebe and Galaxy Resources Ltd (ASX:GXY) to raise a total of $32.5 million at 20 cents per share.

Galaxy contributed $22.5 million in an institutional placement to become Alita’s largest shareholder while the Jiangte subsidiary’s $10 million was provided through a conditional placement.

These placements will provide funding for continued upgrades to the company’s processing facilities and future exploration at its Ball Hill lithium and tantalum mine in WA.

READ: Alliance Minerals Assets changes name to Alita Resources

At the time Alita’s managing director Mark Calderwood said the company was pleased with existing partner Jiangte’s support and welcomed Galaxy as a strategic investor in Alliance.

Calderwood said: “Our focus over the past 18 months has been on delivering the Bald Hill Mine to production and we have developed a reputation for production and supply of high-quality spodumene concentrates.

“Investment by Jiangte and Galaxy Resources, who are both experienced participants in the lithium sector, is a recognition of, and testament to, our achievements and position in the market.”

Stage II plant upgrade

A stage II plant upgrade at Bald Hill involves lowering the dense media separation bottom size from 1 millimetre to 0.5 and increasing hourly plant throughput capacity from 220 tonnes to 300 tonnes.

Detailed engineering as well as equipment tendering and ordering is ongoing, with commissioning of the fines circuit anticipated to begin during the fourth quarter of 2019.

READ: Alita Resources June quarter gets tick from Canaccord

Alita achieved another strong quarter of production from Bald Hill with 38,717 wet metric tonnes (wmt) of high-grade lithium concentrate produced in the three months to June 30 grading 6.2% lithium oxide.

This represents a slight increase in tonnage and about a 35% increase in contained lithia from the March 2019 quarter production of 38,291wmt at 6.1%.

Total half year production was 77,008wmt at 6.15% lithium, equating to 78,937wmt of 6% lithium equivalent, which was at the upper end of previous production guidance.

Quick facts: Alita Resources Ltd

Price: 0.082 AUD

ASX:A40
Market: ASX
Market Cap: $121.07 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Alita Resources Ltd named herein, including the promotion by the Company of Alita Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Alliance Mineral Assets posts record quarterly results, inks MoU for...

Alliance Mineral Assets Ltd (ASX:A40) managing director Mark Calderwood updates Proactive Investors on the lithium producer's record quarterly production at its Bald Hill Lithium Mine, up 68% from the December quarter last year. "We expected this - this is nameplate production, our costs...

on 1/5/19

3 min read