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- Arizona Lithium (AZL) raises $10 million through a placement to institutional and sophisticated shareholders in a bid to advance its Prairie lithium project
- The AZL shares will be issued in two tranches
- AZL is using the funds to deliver a resource upgrade, kick off pilot plant constructions and complete its PFS
- The placement offers shares at 2.5 cents apiece with one free attaching option per share
- AZL shares are down 9.38 per cent, trading at 2.9 cents at 2:28 pm AEST
Arizona Lithium (AZL) has raised $10 million through a placement to institutional and sophisticated shareholders in a bid to advance its Prairie lithium project.
The new AZL Shares will be issued in two tranches, with tranche one comprising 400 million new shares and more than 200 million options.
Tranche two comprises in excess of 100 million options being issued, subject to shareholder approval.
The company will use the money to advance works, including delivering a resource upgrade, kicking off pilot plant constructions and completing its preliminary feasibility study (PFS).
AZL anticipates the completion of all of these activities by the end of 2023 and plans to commence commercial plant constructions at its Prairie project by mid-2024.
The placement offered shares to investors at 2.5 cents apiece with one free attaching option per share. The options are exercisable at 5 cents each, expiring two years from the date of issue.
The company noted the issue of 27.3 per cent of the options was subject to shareholder approval.
“We are pleased to have successfully completed the placement to raise $10 million to further advance the development of the Prairie project and complete construction of the Lithium Research Centre,” AZL Managing Director Paul Lloyd said.
“Importantly, the completion of the pre-feasibility study at the Prairie project and early works on the definitive feasibility study will add significant value to the company.”
With PFS works now underway, the company will use the rest of the funds to complete the construction of its world-class Lithium Research to enable the treatment of bulk samples taken from its Big Sandy lithium project.
AZL shares were down 9.38 per cent, trading at 2.9 cents at 2:28 pm AEST.
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