Mali Lithium Ltd (ASX:MLL), which is soon to be renamed FireFinch, has received a response described as overwhelmingly positive to a $6 million share purchase plan (SPP), which closed heavily oversubscribed and raised around $9.835 million before costs.
Shares applied for under the SPP are expected to be issued on October 30, 2020, with quotation of these shares expected to commence on November 2, 2020.
This takes the company's recent capital raising initiatives to a total of $74 million, which validates its lithium development and gold production strategy.
“Fantastic endorsement of strategy”
Mali Lithium executive chairman Dr Alistair Cowden said: “We are truly humbled by the support of our shareholders.
“To have received such an outstanding response is a fantastic endorsement of our strategy to create shareholder wealth through the rapid scale-up of operations at our recently acquired Morila Gold Mine.
“More so, this massive vote of confidence from our existing shareholders gives credence to our vision to become a mid-tier gold producer.”
The funds raised will be used to:
- Acquire an 80% interest in the Morila Gold Mine in Mali;
- Undertake exploration and evaluation to rapidly grow the mineral resource;
- Complete a new mine plan (resources, ore reserves, schedules and costs);
- Drill to infill and extend resources;
- Re-start open pit mining, initially at the N’Tiola and Viper satellite pits; and
- Provide for the working capital needs of the company.
“Rapidly scaling up gold assets”
Dr Cowden said: “Together with the placement proceeds, the company has raised approximately $74 million (before costs), with a significant portion of the proceeds to be deployed to rapidly scale up our gold assets, including the imminent deployment of drill rigs for which we intend to keep our shareholders up to date.
“We are motivated to deliver success for our shareholders and look forward the to the very exciting wealth creation journey ahead.”