11/01/2016 - 13:35

Lithium in $6.55m placement

11/01/2016 - 13:35

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Perth-based explorer Lithium Australia has attracted its first institutional investor for a big slice of its $6.55 million capital raising.

Lithium in $6.55m placement
Lithium Australia chairman George Bauk.

Perth-based explorer Lithium Australia has attracted its first institutional investor for a big slice of its $6.55 million capital raising.

The George Bauk-chaired lithium hopeful will place about 42.8 million shares at 14 cents each to raise the funds, with $4 million of the placement committed by Lanstead Capital.

The remaining $2.55 million of the placement will be issued to sophisticated and professional investors that are clients of Melbourne-based BW Equities.

BW Equities acted as manager for the placement.

Lithium managing director Adrian Griffin said the board was elated with the outcome of the funding opportunity despite recent market turmoil.

“We welcome Lanstead as our first institutional shareholder and applaud the confidence Lanstead has in our strategy to use disruptive technology to surpass the outcomes being achieved by the more conventional lithium producers,” Mr Griffin said.

“When combined with our recently announced contributing share issue we will potentially have access to over $28 million.

“Lithium is well positioned to advance its projects in 2016 and beyond.”

Following completion of the placement, Lanstead will own about 15.9 per cent of Lithium’s total issued share capital.

Lithium changed its name from Cobre Montana in August last year.

Lithium shares closed 3.1 per cent higher to 16.5 cents each.

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