Lithium Australia’s spin-off of graphite assets into BlackEarth Minerals is successfully away with the IPO reaching its minimum subscription of $4.5 million well ahead of the offer closing date.
In an update to the ASX, Lithium Australia reported the float had reached its minimum subscription thanks in part to a strong response from Lithium Australia shareholders to a priority entitlement offer.
While a final count is yet to be completed, current indications are that the full priority entitlement offer of 5 million shares and 2.5 million free attaching partly paid shares would be issued.
Any excess applications will be considered as part of the general offer, which is scheduled to close on the 14th of December. The expected date for listing on the ASX is the 22nd of December.
Lithium Australia shareholders have plenty of reasons to line up for the BlackEarth Minerals IPO, which is seeking to raise up to $6 million.
Lithium Australia shareholders have already received one highly successful priority offer this year with the spin-off of Metalstech, which is trading at well above a 50% premium to its 20-cent issue price.
Furthermore, all signs are good for BlackEarth, which has high quality projects in Madagascar and is coming to market after a strong rally in graphite prices.
BlackEarth has two projects in the mineral rich East African nation that is famous for its high quality, large flake graphite – so famous in fact that it sets the world standard for graphite quality known as the Madagascan Graphite Standard.
BlackEarth’s Maniry project covers an area of around 143 square kilometres and is approximately 40 km north of Ampanihy, a large regional township in southern Madagascar.
Company management say that Maniry hosts a large-scale graphite mineralised system and preliminary work on most of the defined targets has been completed.
The newly formed company also has a suite of interesting projects in Western Australia, thanks to the fact that Lithium Australia foresaw the graphite story long before others and used its first mover advantage to assemble a portfolio of quality graphite prospects across the state.
