The first Capital Crunch for this week sees emerging gold producer Lion One Metals (ASX:LLO) enter into an agreement with Eight Capital to upsize a previously announced private placement to $10 million.
Lion One will issue up to 27.02 million units in the company at $0.37 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one share at $0.50 with a three year expiry date.
Funds from the private placement will be used towards general working capital and corporate purposes.
The offer is expected to close on or around 26 July 2024.
Lithium Australia (ASX:LIT) has executed share placement agreements for $1.8 million and total funding of up to $7.5 million with Lind Global Fund, which is an entity managed by The Lind Partners.
Under the placement agreement, Lithium Australia will receive an initial $1.8 million, with up to an additional aggregate amount of $5.7 million in funding available by mutual agreement.
As part of the agreement, the remaining 32.25 million collateral shares previously issued to Acuity Capital Investment Management, as part of an at-the-market subscription agreement will be used as part of the shares to Lind.
The company has also launched a share purchase plan (SPP), which will provide an opportunity for eligible shareholders to subscribe for $30,000 worth of new shares.
Under the SPP, shares will be issued at $0.021 per new share, representing an 8.7% discount to the 5-day volume weighted average price of $0.023 per share.
Funds raised will help drive key growth and business development initiatives across the battery recycling and battery materials divisions.
The Lind Partners manages institutional funds providing growth capital to small- and mid-cap companies traded in the US, Canada, Australia, and the UK.
Lithium Australia is currently focused on enabling the global transition to sustainable lithium production. The company operates Australia’s market battery recycler, produces critical battery material lithium ferro phosphate and has developed a patented lithium extraction technology.
Meanwhile, Cullen Resources (ASX:CUL) is conducting a pro-rata non-renounceable rights issue for up to 190.05 million new shares, on the basis of one new share for every three shares issued to raise up to $1.14 million.
The shares will be issued at $0.006 per share, representing a 25% discount to the last closing price of $0.008.
Cullen Resources says the funds raised will be used to primarily advance exploration for gold, base metals, and nickel-copper-platinum group element mineralisation at its Wongan Hills Project, alongside gold and lithium at the Barlee Project.
Funds will also go towards exploring for rare earths, lithium, and gold at the Bromus South Project, as well as advancing targeting at the Cue and Yornup Project.
Cullen Resources is an Australian-focused minerals explorer with several terranes in Western Australia that are considered prospective for gold and base metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Lion One Metals
