Global Lithium Resources (ASX:GL1) has completed the issuance of 13.84 million shares to Jiangsu Lopal Tech (HKG:2465), as part of a strategic placement.
The company raised $7.32 million, which will be used to develop the Manna Lithium Project in Western Australia.
Under the placement, shares were issued at $0.52875 per share.
Managing Director Dianmin Chen says the completion of the placement marks a milestone for the company, with the funds to be used to progress Manna towards a final investment decision.
As previously reported, the company executed a binding term sheet with Jiangsu Lopal Tech, as well as an offtake prepayment of US$75 million ($105.4 million).
Under the 10-year offtake deal, Global Lithium will offtake 40% of Manna’s annual production. From the beginning of production, the company will use reasonable endeavours to supply at least 70,000 tonnes of product annually.
Global Lithium is a diversified Western Australian explorer and developer. The company has defined a total indicated and inferred resource of 51.6 million tonnes @ 1% lithium oxide at the Manna Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Global Lithium
