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viewLithium Australia NL
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ASX:LITOTC:LMMFFFRA:3MW
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Lithium Australia raises $1.7 million through placement with Acuity Capital

The proceeds from the placement will be used to commercialise the Envirostream recycling business, fund the VSPC feasibility studies and the LieNA® pilot plant, and for general working capital purposes.

Lithium Australia NL - Lithium Australia raises $1.7 million through placement with Acuity Capital
LIT and Acuity have agreed to increase the maximum capacity under their controlled placement agreement to $25 million.

Lithium Australia NL (ASX:LIT, OTC:LMMFF, FRA:3MW) is set to raise $1,775,000 under its controlled placement agreement (CPA) with Western Australian investment bank Acuity Capital.

As per the CPA, the company plans to issue 15 million fully paid LIT shares to Acuity at $0.1183 per share. Proceeds from the fundraising initiative will be used to commercialise the Envirostream recycling business, fund the VSPC feasibility studies and the LieNA® pilot plant, and for general working capital purposes.

The controlled placement agreement with Acuity was first established in July 2017 and provided up to $12.5 million in standby equity capital to support LIT's operations.

CPA increase

In addition to the share issue, LIT has agreed to increase the maximum available capital under its CPA with Acuity by a further $12.5 million to $25 million.

In the past, the lithium company has used the facility to raise $12 million, meaning the remaining standby equity capital now sits at around $13 million.

The company has also agreed to increase the shares held as security by Acuity under the CPA to 45 million by issuing another 30 million shares under its listing rule 7.1 capacity.

LIT, however, clarified that it may at any time cancel the CPA for nil cash consideration, subject to any required regulatory and shareholder approvals.

Facility formation

In July 2017, Lithium Australia established the CPA with Acuity, with the original terms providing the company with up to $5 million in standby equity capital over a 29-month period.

Importantly, Acuity Capital and the CPA did not place any restrictions on LIT raising capital through other methods, and LIT retains full control of all aspects of the placement process.

The ASX-lister maintains sole discretion as to whether or not to utilise the CPA, the quantum of issued shares, the minimum issue price of shares and the timing of each placement tranche.

Quick facts: Lithium Australia NL

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