15/06/2017 - 13:41

Pilbara taps investors for another $65m

15/06/2017 - 13:41

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Pilbara Minerals has announced another capital raising, this time by way of a placement and share purchase plan, to fund development of its Pilgangoora lithium project.

Pilbara taps investors for another $65m
The Pilgangoora lithium project in the Pilbara.

Pilbara Minerals has announced another capital raising, this time by way of a placement and share purchase plan, to fund development of its Pilgangoora lithium project.

Perth-based Pilbara said it would place up to 220 million shares at 35 cents each to raise $50 million, and would undertake a share purchase plan at the same price to raise a further $15 million.

The pricing represents a 10.9 per cent discount to the company’s five-day volume-weighted average price.

Its similar to the 38 cents per share pricing for a $100 million capital raising the company completed in April last year.

In the intervening period, the company's shae price briefly touched 87 cents before sliding lower.

In addition to the placement and SPP, Pilbara’s offtake partner, Jiangxi Ganfeng Lithium, has subscribed for $US20 million ($A27 million) as part of an investment agreement announced last month, bringing the total amount raised under the placement to $77 million.

Pilbara’s major shareholder, Mineral Resources, has signalled its intention to participate in the placement.

The raising is on top of a $US100 million ($A133 million) bond issue finalised earlier this week.

In a statement, Ken Brinsden-led Pilbara said the proceeds from the raising would be used to fund the development of Pilgangoora, which has a $214 million capex, as well as exploration and interest costs.

"The proceeds from the placement and SPP when combined with the $US100 million bond issue recently announced and existing cash reserves are expected to provide a fully funded solution to rapidly advance development of the Pilgangoora project to full scale operation," the company said.

Commissioning at Pilgangoora is expected during the first quarter of next year, with first concentrate shipments due in April.

Pilbara shares were last worth 37.5 cents each at 1:45pm.

 

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