06/12/2017 - 13:49

Lithium stocks up on funding deals

06/12/2017 - 13:49

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Shares in junior lithium explorers MetalsTech and Force Commodities have spiked after the companies announced funding and joint venture agreements, while European Lithium will tap investors to progress its lithium project in Austria.

European Lithium announced plans to raise up to $5 million through a share placement.

Shares in junior lithium explorers MetalsTech and Force Commodities have spiked after the companies announced funding and joint venture agreements, while European Lithium will tap investors to progress its lithium project in Austria.

Perth-based Force said it has signed a binding heads of agreement with Mining Mineral Resources to establish a joint venture at the Kanuka lithium project in the Democratic Republic of Congo.

Force shares finished the day up 80 per cent or four cents, at nine cents.

MMR is part of the VinMetals Group, a diversified mining, metals and trading group that has operated in the Congo since 1997.

Under the agreement, Force will issue $200,000 of shares to MMR as up-front consideration and the Perth-based company will contribute $2 million to exploration at the project to take a 51 per cent stake.

Force also announced a $3 million capital raising and will issue 60 million shares at 5 cents each.

The share placement was oversubscribed with demand from institutional and sophisticated investors.

Funds from the placement will help support exploration at the Kanuka project and the company’s Kitotolo lithium project in the Congo.

MetalsTech announced it had signed a binding agreement with international battery manufacturer Guangdong Dynavolt Renewable Energy Technology to buy 10 million shares.

Dynavolt will purchase the shares at 30 cents each under the agreement, with a six-month escrow, to raise $3 million.

Perth-based MetalsTech also completed a strongly supported placement of nearly 6 million shares to raise a further $1.8 million.

Executive chairman Russell Moran said the agreement secured an exciting partnership.

“Dynavolt is a global leader in the lithium-ion battery space, having been the battery supplier of choice for market leaders including BMW, Ducati, Suzuki and Kawasaki,” he said.

“They recently invested more than 3 billion Chinese yuan ($600 million) in building a high-end lithium battery division and we are excited at the opportunity of working closely with them as we seek to position ourselves as a valuable source of raw and refined lithium materials.”

Shares in MetalsTech finished up 9 per cent at 30 cents.

Meanwhile, European Lithium announced plans to raise up to $5 million through a share placement to advance its Wolfsberg lithium project located in Austria.

Shares will issued be at 22.5 cents each with one free attaching unquoted option for every four shares applied for under the placement.

The company will also issue 14.4 million options that are exercisable at 25 cents.

Chairman Tony Sage said the funds would be used towards expediting a drilling program at the Austrian lithium project.

“This is a very exciting period for the company with strong support coming from UK and European investors who have bought in excess of 120 million of the company’s shares in the past two months,” he said.

Shares in European finished up 10 per cent at 32 cents. 

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