Altura Mining has announced plans to raise approximately $21.5 million through a rights issue to primarily fund works on its flagship lithium operation in Western Australia.
Altura Mining has announced plans to raise approximately $21.5 million through a rights issue to primarily fund works on its flagship lithium operation in Western Australia.
The miner said capital raised would go towards funding works at its Altura lithium process plant at Pilgangoora as the company ramps-up to full production of 220,000 wet metric tonnes of spodumene concentrate.
Specifically, the works will involve increasing lithia recoveries, lift product and reduce unit operating costs.
Altura also said the offer would provide funding for exploration on its recently acquired tenements in the Pilbara.
The company will issue two new shares for every 13 existing shares to eligible shareholders next Thursday at 6 cents per share.
This issue price represents a 10 per cent discount to five-day volume-weighted average price of 6.67 cents per share.
Altura Mining managing director James Brown said the rights issue would provide the necessary working capital for the company to fine-tune aspects of the lithium plant to increase production rates and operating efficiencies.
“Altura has made excellent progress with the construction and commissioning of the Pilgangoora project,” he said.
“We are now approaching full production rates, driving down unit operating costs and generating substantial cash operating margins on sales.
“We have binding offtake agreements in place with multiple large lithium converters and battery manufacturers and we are continuing to make regular shipments of high-quality spodumene concentrate to our customers.”
In August, Altura announced an agreement with Sayona Mining to earn a 51 per cent interest over its Pilbara lithium tenements in exchange for $1.5 million on exploration over three years.
Mr Brown said the capital raising would provide funding to explore these tenements.
Altura has also announced it has entered into a loan agreement with Katsura Holdings to provide $2.8 million in funds for the company’s general working capital requirements during the capital raising period.
Allan Buckler is a director at both companies and has committed to take up his full entitlement under the rights issue.
Shares in Altura are down 6.25 per cent to trade at 6 cents per share, its lowest since January 2016, as at 1:15pm AEST.
