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- Lithium Energy (LEL) taps investors for $6.4 million to develop its lithium and graphite projects in Argentina and Queensland
- The oversubscribed capital raise will see eight million new shares issued to new and existing investors at 80 cents apiece
- Concurrently, the company’s major shareholder, Strike Energy (SRK) completed the sale of three million LEL shares at the same price as the placement
- Strike remains the largest LEL shareholder, and confirms it has no intention for further sales within the next six months
- Lithium Energy is down 6.11 per cent and trading at 84.5 cents at 1:35 pm AEST
Lithium Energy (LEL) has tapped investors for $6.4 million to develop its lithium and graphite projects.
The company’s capital raising will see eight million new shares issued to new and existing investors at 80 cents apiece, completed within the company’s additional 10 per cent placement capacity.
Canaccord Genuity acted as lead manager to the issue, which it reported was “significantly” oversubscribed.
Lithium Energy told investors that the funds raised would go towards advancing the ongoing development of its Solaroz lithium brine project in Argentina.
This includes resource definition drilling and the installation of large-diameter wells for pump testing, plus delineating a maiden JORC mineral resource estimate.
The remaining funds will also go towards its Burke and Corella graphite projects in Queensland for the completion of a prefeasibility study and a metallurgical test work program.
Concurrently, the company’s major shareholder, Strike Energy (SRK) completed the sale of three million LEL shares at 80 cents per share.
Strike remains the largest LEL shareholder, holding 31.4 million shares – or 30.49 per cent of the company, post issue.
Strike reported it has “no present intention” to sell any further within the next six months.
LEL was down 6.11 per cent and trading at 84.5 cents at 1:35 pm AEST.
