Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) has secured an initial investment of A$1.8 million from The Lind Partners, with total funding of up to A$7.5 million, after it executed two agreements with the asset management firm.
Up to a further aggregate amount of approximately A$5.7 million in funding will be available by mutual agreement.
Operational improvements
The funds will be used to accelerate operational improvements within the battery recycling division and support business development activities in the battery materials division.
Additionally, the company has launched a share purchase plan (SPP) to provide further funding.
CEO and managing director Simon Linge said: “We are pleased to announce the launch of an SPP and signing of a placement agreement with Lind, a long-term supporter of Lithium Australia.
“Proceeds raised will help advance our growth strategy within our battery recycling division, continuing the momentum achieved following the signing of recycling agreements with improved commercial arrangements, and execution of an MMD off-take agreement.
Business development
“We will also undertake business development activities including offtake development and securing of strategic partners and funding for our battery materials division.
“Finally, a strategic assessment of potential monetisation pathways for our technology portfolio will also be completed.
"We look forward to FY25 and providing updates over the coming weeks and months.”
About the SPP
The SPP offers eligible shareholders the opportunity to subscribe for up to A$30,000 worth of new shares at a price of A$0.021 per share, representing an 8.7% discount to the five-day volume-weighted average price (VWAP) and the last closing price of A$0.023 per share as of July 19, 2024.
The company’s CFO Stuart Tarrant said: "The Lind funding allows flexibility enabling the company to focus on achieving key strategic milestones, optimising our cost base, and effectively managing our capital requirements.
“The SPP provides an opportunity for our shareholders to support our strategic initiatives."
The Lind Partners founder Jeff Easton said: “Lind first invested in Lithium Australia in 2019, backing its strategy to become a leader in the emerging Australian and global battery industry through commercialisation of its battery recycling, lithium chemicals and battery materials opportunities.
"We are extremely pleased that Lithium Australia has selected Lind to re-invest alongside the SPP to accelerate its growth strategy, key business development initiatives and commercialisation plans across the recycling and battery materials businesses.
"We look forward to working with the team and supporting the business as it enters its next phase of growth.”