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Infinity Lithium raises A$930,000 to advance San José Lithium Project

The Spanish project is expected to support a self-contained battery industry which is being developed in Europe.

Infinity Lithium raises A$930,000 to advance San José Lithium Project
INF is encouraged by the strong response from sophisticated investors

Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) is encouraged by the strong response received to a placement from sophisticated investors with commitments received to raise approximately A$930,000.

This capital raising is aligned with the recent strategic investment opportunity by EU-based InnoEnergy both of which will allow the company to advance its integrated European lithium supply strategy.

The strategy centred on the company’s San José Lithium Project in western Spain, is seeking to assist in the development of a self-contained battery industry in Europe.

Strong response

Infinity initially sought a lower amount and owing to the response oversubscriptions were taken.

This ensures that the company remains in a solid position and can work with InnoEnergy in advancing the San José project.

The placement issue price is 3.5 cents per share, with participants issued one attaching unlisted option for every two shares subscribed for at an exercise price of 7 cents with an 18-month term.

Strategic InnoEnergy investment

Funds raised will be used to continue project activities as well as for general working capital as Infinity progresses towards completing the strategic investment execution with InnoEnergy.

InnoEnergy’s potential strategic investment highlights Infinity’s progression to engage with European institutions.

It is also an endorsement of the technical outcomes of a successful pre-feasibility study for the production of lithium hydroxide.

The proposed InnoEnergy investment is initially focused on direct technical work with the Phase I commitment totalling €800,000 (approximately A$1.5 million).

San José is a highly advanced lithium-tin deposit with near-term production potential.

Infinity is now benefiting from its sole focus on lithium and the wider support of European institutions in the advancement of San José.

Use of funds

Specific use of the funds is:

  • The advancement of Mining Licence applications, permitting, environmental, social and regulatory aspects of San José;
  • Advancement of work associated with entering into strategic investment and/or supply and offtake agreements in respect of future lithium production as the company advances towards the delivery of the San José Lithium Hydroxide Feasibility Study; and
  • Working capital purposes.

Placement details

Except for director participation the shares and attaching unlisted options issued will fall within the company’s placement capacity under ASX Listing Rule 7.1 and 7.1A.

Settlement of the placement, excluding director, is scheduled to occur on April 28, 2020.

Subject to shareholder approval, directors intend to participate by subscribing to shares and valued at $50,000.

The company will seek shareholder approval at a general meeting proposed to occur in June 2020.

Quick facts: Infinity Lithium Corporation Ltd

Price: 0.096 AUD

ASX:INF
Market: ASX
Market Cap: $29.79 m
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