Lithium Energy (ASX:LEL) has completed a $6.4 million capital raise to advance the development of its Solaroz Lithium Brine Project in Argentina and the Burke and Corella Graphite projects in Queensland, Australia.
Under the capital raise, the company issued 8 million shares at $0.80 per share — a discount of around 11% to its last trading price of $0.90 on 20 June.
Canaccord Genuity acted as Lead Manager to the capital raise, which Lithium Energy says was ‘significantly’ oversubscribed.
Lithium Energy notes that major shareholder Strike Resources (ASX:SRK) completed the sale of 3 million LEL shares at a price of $0.80 per share at the same time, though Strike remains the company’s largest shareholder with 31,410,000 shares on hand.
Strike has confirmed to Lithium Energy that it has no intention of selling any more shares for the next 6 months
Strike has confirmed to Lithium Energy that it has no intention of selling any more shares for the next 6 months.
At the Solaroz Lithium Brine Project in Argentina, the funds will be used to delineate a maiden JORC Mineral Resource Estimate (MRE), ongoing resource definition drilling and the drilling of ‘large’ diameter wells for pump testing, ongoing engineering and other feasibility and technical studies, and development work with Lanshen on the construction and commissioning of a 3,000 tonne-per-annum demonstration plant on the Mario Angel concession.
Meanwhile, at the Burke and Corella Graphite projects, the funds will be put towards the completion of a Prefeasibility Study, a purified spherical graphite (PSG) testwork program on the Burke bulk concentrate, and an initial metallurgical testwork program on Corella graphite.
Lithium Energy is a battery minerals company focused on developing its Solaroz Lithium Brine Project and the Burke and Corella Graphite projects.
The company’s flagship Solaroz Lithium Brine Project comprises 8 mineral concessions totalling about 12,000 hectares. The project is located in the Salar de Olaroz basin in northwest Argentina, within South America’s ‘lithium triangle’.
Lithium’s wholly owned Burke and Corella Graphite projects are located in the Cloncurry region in North Central Queensland, Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Lithium Energy Ltd
