Lithium Australia in $12m raising

Perth-based Lithium Australia has announced plans to raise up to $12.6 million to fund ongoing exploration work at a number of its projects.

Lithium has invited shareholders to participate in a share purchase plan priced at 18 cents a share, with a minimum subscription set at $2,000 and a maximum of $15,000.

The price represents a 14 per cent discount to the lithium company’s five day volume-weighted average price.

The company will put the funds raised towards development of its extraction processes, as well as exploration initiatives across Australia, Mexico and Europe, and for general working capital.

Managing director Adrian Griffin said the company recognised it was often difficult for retail investors to take advantage of discounted capital raisings.

“With that in mind, we have decided to offer those shareholders on the register, at the close of business on October 5, the opportunity to expand their holdings at a discount to market, by way of this SPP invitation,” Mr Griffin said.

“The issue will give participants the opportunity to buy at a discount to market and without brokerage.

“It is a continuation of our policy to reward our very supportive and valued shareholder base.”

Lithium shares were 13.6 per cent lower to 19 cents each at 11am.