- Morella Corporation (1MC) will raise $7.5 million after receiving firm commitments from institutional and sophisticated investors
- The single tranche placement will issue 500 million new shares at an issue price of 1.5 cents, with Waratah Capital Advisors promising a cornerstone investment of $3 million
- Morella will use the money to support the continued resource definition programs across its Western Australia and Nevada lithium projects
- Settlement of shares is expected to take place on August 1 with allotment on August 2
- Shares in Morella are in the grey, trading at 1.7 cents at 11:35 am AEST
Morella Corporation (1MC) has received firm commitments from institutional and sophisticated investors to raise $7.5 million.
The single tranche placement will issue 500 million new shares at an issue price of 1.5 cents, which Waratah Capital Advisors, through its subsidiary, has promised a cornerstone investment of $3 million.
The issue price represents an 11.8 per cent discount to the last closing price of Morella shares on July 20.
Morella will use the money to support the continued resource definition programs across its Western Australia and Nevada lithium projects.
CEO Alex Cheeseman said the completion of the capital raise will provide the company with the balance sheet to continue to advance its lithium project interests “in two of the best mining jurisdictions in the world”.
“It is a testament to the team and portfolio we have built that we have gained the support of a premier, lithium specialty investor and we are very pleased to be partnering with LRC and Waratah,” he said.
“With the raise now completed we focus directly on advancing our projects and look forward to keeping the market updated as our exploration and resource definition works progress.”
In addition to the equity investment, LRC, Morella and Sayona Mining (SYA) have agreed to binding terms for a royalty on lithium products produced from both the Mt Edon lithium
project and the Tabba Tabba lithium project.
Following completion of the capital raise and receipt of first round royalty payments, Morella will have a cash balance of approximately $11.5 million.
Settlement of shares is expected to take place on August 1 with allotment on August 2.
Shares in Morella were in the grey, trading at 1.7 cents at 11:35 am AEST.