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ioneer completes $40 million placement to advance Rhyolite Ridge Lithium-Boron Project DFS

The placement was strongly supported by existing shareholders and new investors including high-quality domestic and offshore institutions.

ioneer Ltd - ioneer completes $40 million placement to advance Rhyolite Ridge Lithium-Boron Project DFS
The Rhyolite Ridge DFS and decision on relevant environmental approval process are anticipated to be complete by Q1 2020

ioneer Ltd (ASX:INR) has successfully completed a fully underwritten institutional placement to raise $40 million at 20 cents per share to advance the development of the Rhyolite Ridge Lithium-Boron Project in Nevada, US.

Importantly, the placement was fully subscribed, reflecting strong support for the company, driven by ongoing interest in the Rhyolite Ridge Project.

Proceeds from the placement will be used to advance the development of the project by funding ioneer through to Final Investment Decision (FID), including:

  • Completion of the Definitive Feasibility Study (DFS);
  • Advance detailed engineering beyond the DFS to about 50% completion;
  • Completion of the environmental approval process; and
  • Ongoing working capital and potential long lead time items.

The Rhyolite Ridge DFS and decision on relevant environmental approval process are anticipated to be complete by Q1 2020.

US-based cornerstone investor

As part of the placement, US-based private capital investor Centaurus Capital LP has made a cornerstone investment in the company.

The fund will hold a 7.8% shareholding in the company at settlement.

Managing director Bernard Rowe recently said: “The last 12 months have been an exciting, defining period for ioneer making significant steps to de-risk Rhyolite Ridge and move closer to FID.

“Since the publication of the PFS in late 2018, several critical milestones have been achieved including the successful construction, development and operation of a full simulation pilot plant.

“The equity raising is yet another key milestone as it ensures we are well funded through to FID and can focus on delivery of the DFS, securing off-take agreements, advancing detailed engineering to ensure the shortest possible timeframe to production and completion of the environmental permitting process.

“We would also like to acknowledge the continued support of Centaurus Capital that as an existing shareholder has provided a cornerstone investment as part of the Placement.

“Centaurus’ definitive support is a clear vote of confidence in the underlying quality of Rhyolite Ridge and its positioning as a strategic source of future US supply of lithium carbonate and boric acid.”

Quick facts: ioneer Ltd

Price: 0.195 AUD

ASX:INR
Market: ASX
Market Cap: $327.33 m
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