14/12/2018 - 15:28

Birimian plans $8.2m raising, reviews business

14/12/2018 - 15:28

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Subiaco-based Birimian has announced plans to raise $8.2 million for its Goulamina project in Mali, while the lithium aspirant also flagged a business review and two separate agreements with Chinese companies.

Birimian plans $8.2m raising, reviews business
The Goulamina lihtium project is located in Mali.

Subiaco-based Birimian has announced plans to raise $8.2 million for its Goulamina project in Mali, while the lithium aspirant also flagged a business review and two separate agreements with Chinese companies.

Under a $6 million placement, the company has issued 35 million shares at 17 cents each, with Hartleys and Ironside Capital acting as joint lead managers.

Birimian said it was also planning a one-for-20 entitlement issue at the same price to raise $2.2 million.

Funds raised will be used to advance offtake and financing activities and to progress the definitive feasibility study at Goulamina.

The company has also signed a letter of intent with the Changsha division of mining group China Minmetals Corporation to discuss financing and offtake opportunities for the project, while also considering other ways that the two companies can collaborate.

Changsha is a specialist metallurgical, mining, research and development company.

A memorandum of understanding has also been signed with lithium producer General Lithium Corporation of China to begin negotiations for 55 per cent of planned production from Goulamina.

Birimian chief executive Mark Hepburn said the company was extremely pleased to have signed the LOI with Changsha.

“As a division of Minmetals they are part of one of the largest mining houses in China,” he said.

“We look forward to beginning our discussions exploring financing, offtake and construction possibilities for our project with this highly credentialed Chinese company.

“With the MOU, General Lithium Corporation of China is an established company in the production of lithium products with very experienced management in the lithium industry and we look forward to discussing the possibility of establishing an offtake agreement that will account for a significant portion of our production.

“Furthermore, we are pleased that the placement was oversubscribed and well received by the investors who participated.”

Birimian said its business review had resulted in the company relinquishing four exploration permits in Mali.

“The decision to relinquish follows a comprehensive review of the prospectivity of the company's exploration permits,” the company said in a statement to the ASX.

 

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