- Lithium Power International (LPI) receives commitments from sophisticated and institutional investors to raise $12.4 million via a placement
- Proceeds from the raise are set to support the development of the Maricunga Lithium Brine Project and increase exploration at the Greenbushes Project
- The cash is hoped to enable the Maricunga Project to remain fully funded until a final investment decision is reached
- More than 47 million shares are set to be issued to investors at 26 cents, representing a 10.3 per cent discount on its August 19 closing price
- LPI ends the day 3.45 per cent in the red with shares trading at 28 cents
Lithium Power International (LPI) has received commitments from sophisticated and institutional investors to raise $12.4 million via a placement.
The company entered a trading halt on August 20 but did not disclose how much it intended to raise or how it would use the funds.
LPI has since announced the completion of the placement, under which approximately 47.69 million new shares will be issued to investors at 26 cents apiece.
This price represents a 10.3 per cent discount to LPI’s closing price of 29 cents on August 19 and a 12.9 per cent discount to the five-day volume-weighted average price of 30 cents.
Proceeds from the raise are set to support LPI’s joint venture company, Minera Salar Blanco, in developing the Maricunga Lithium Brine Project in Chile and increase exploration at the Greenbushes Project in Western Australia.
The cash is hoped to enable the Maricunga Project to remain fully funded until a final investment decision is reached, supporting the completion of an updated JORC resource in mid-September.
Additionally, the money will enable LPI to progress with exploration at Greenbushes with a 2900 metre drilling program planned for Q4.
CEO Cristóbal Garcia-Huidobro commented on the placement.
“The ongoing support of existing shareholders adds considerably to our strong base ahead of the Maricunga Project development decision,” Mr Garcia-Huidobro said.
“The Board of LPI wishes to thank existing shareholders for their support as we take the next exciting steps in the development of LPI’s flagship Maricunga Project and further explore the opportunities ahead at Greenbushes in WA.”
Canaccord Genuity acted as Lead Manager while Everblu Capital acted as Co-Manager.
LPI ended the day 3.45 per cent in the red with shares trading at 28 cents.