07/02/2019 - 13:36

Altura directors to fund majority of $28m raising

07/02/2019 - 13:36

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Altura Mining has announced details of a capital raising to fund its Pilgangoora lithium project in the Pilbara, with company directors contributing $15.46 million towards the financing package.

Directors will contribute $15.46 million, which will go towards its Pilgangoora lithium project.

Altura Mining has announced details of a capital raising to fund its Pilgangoora lithium project in the Pilbara, with company directors contributing $15.46 million towards the financing package.

The funding arrangement comprises of a $23 million share placement to institutional and sophisticated investors, valued at 13 cents per share, which is an 18 per cent discount to the company’s 30-day volume-weighted average price of 15.87 cents.

Under the share placement, approximately 184 million shares will be issued, and one free attaching option for every two new shares purchased will also be issued.

Altura has received $15.46 million in commitments from company directors, with $8 million in commitments from parties not related to the company.

Altura managed the placement with the assistance of Jett Capital Advisors.

The company also announced a securities purchase plan for existing shareholders, to raise up to $5 million.

Altura managing director James Brown said the funds would provide a significant working capital buffer as the company moved closer to achieving nameplate production capacity of 220,000 tonnes per annum at its flagship Altura lithium project.

“This capital raising provides working capital strength for the final push in the ramp-up phase,” he said.

“The most recent modifications we’ve made to the plant have had a significant impact on performance and we are now consistently achieving approximately 70 per cent of nameplate production capacity.”

Shares in Altura were down 6.9 per cent on the news, to close trade at 14 cents each, which is the company’s lowest price since July 2017.

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