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Mali Lithium raises A$74 million to support purchase of 80% in Morila gold mine

There was an overwhelming response to a share purchase plan, which closed heavily oversubscribed and raised $9.835 million – validating the company’s lithium development and gold production strategy.

Mali Lithium Ltd - Mali Lithium completes A$74 million capital raising to support 80% interest in Morila gold mine
The funds will be used to rapidly scale-up the company’s gold assets

Mali Lithium Ltd (ASX:MLL) has completed a A$74 million capital raising to support the purchase of an 80% interest in the Morila gold mine in Mali, West Africa.

The company is now well capitalised and has met the financing condition precedent in the agreement with Barrick Gold Corp (NYSE:GOLD) and AngloGold Ashanti Limited (NYSE:AU) to purchase an 80% share in Morila.

On September 9, Mali Lithium announced a placement of new shares at a price of 16 cents to sophisticated and institutional investors to raise up to A$64 million.

The placement was undertaken in two tranches with the second tranche closing on Wednesday, October 28, 2020.

All funds for the second tranche have now been received and the shares issued.

Overwhelming response to SPP 

A share purchase plan (SPP) where eligible shareholders were able to subscribe for up to $30,000 of new shares at an issue price of 16 cents was also announced.

It was intended that the SPP would raise up to A$6 million but an overwhelming response from shareholders resulted in $9,835,000 being subscribed for. 

Mali Lithium resolved to accept all oversubscriptions from the SPP and the SPP will be issued on Friday, October 30.

The company plans to close the Morila acquisition by November 1, 2020.

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