08/11/2016 - 10:43

Altura attracts Chinese firm for $41m deal

08/11/2016 - 10:43

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Altura Mining has attracted a Chinese lithium battery producer for a $41.6 million investment in the business to assist with the development of its Pilgangoora lithium project in the Pilbara.

Altura is exploring for lithium at its Pilgangoora project in the Pilbara.

Altura Mining has attracted a Chinese lithium battery producer for a $41.6 million investment in the business to assist with the development of its Pilgangoora lithium project in the Pilbara.

Altura raised the funds from Shaanxi J&R Optimum Energy Co through the placement of 306 million shares at 13.6 cents each.

The price of the raising represents a 4.6 premium to Altura’s 30-day volume-weighted average price.

Post-raising, J&R Optimum will hold a 19.9 per cent stake in Altura, and will have the right to nominate a director to the aspiring lithium miner’s board.

“Our groups have the same strong vision and expectation of delivering growth and excellent results for all of our respective stakeholders,” Altura managing director James Brown said.

“This transaction significantly de-risks the Pilgangoora lithium project and provides a strong lead to debt funding groups as Altura works towards finalising the complete financial package for the project.”

Last week, Altura announced the purchase of a dormant mine camp from Roy Hill Holdings for an undisclosed sum, which will be used to accommodate workers as the company begins construction work at Pilgangoora at the end of the year.

Altura shares were 16 per cent higher to 14.5 cents each at 10:45am.

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