TNG is set to raise $15 million via a share placement and rights issue, while Lithium Australia has announced a $6.5 million rights issue.
TNG said it secured $10 million via share placement with two Germany -based institutions, DELPHI and Sparta, at an issue price of 9.3 cents per share, a discount of 11.4 per cent from the company’s prior closing share price.
Additionally, the Subiaco-based company will undertake a one-for-20 rights issue to raise $5 million.
In a statement, TNG said the funds raised from the placement and rights issue would go towards the development of its Mount Peake vanadium-titanium-iron project in the Northern Territory.
“Following last year’s strategic investment by Indian Iron ore conglomerate the Vimson Group, we now have a much stronger strategic and institutional presence on our register, which is exactly what is required and we will continue to grow as we move to put in place a multipronged project funding package for Mount Peake,” he said.
Mount Peake has a forecast capex of $853 million, and in May Switzerland-based DKSH signed an offtake agreement for all of Mount Peake’s titanium, equating to up to 150,000 tonnes of the commodity per annum.
Lithium Australia will undertake a 1-for-6 rights issue at 6 cents per share to raise up to $6.5 million.
The rights issue is at a 28 per cent discount to its five-day volume-weighted average price.
It is partially underwritten to $1.5 million by CPS Capital Group.
It said the funds raised would be used for several endeavours, including exploration on its Youanmi and Medcalf projects in Western Australia, development of its SiLeach, LieNA, and L-Max lithium chemical products.
It will be also used for its VSPC pilot plant operations and its battery recycling partnership with Envirostream.
Shares in TNG were down 6.7 per cent to trade at 9.8 cents each at 1.45pm AEST.
Shares in Lithium Australia were down 13.75 per cent to trade at 6.9 cents each at 1.40pm AEST.