Alkemy Capital Investments PLC (LSE:ALK), a firm with a lithium processing project in the UK, saw its shares rocket in Thursday’s early deal after it lined up to £25 million of funding.
The investment company, a micro-cap with a market value of around £6.5 million, announced that ABG Sundal Collier will lead ‘one or several private placing of a convertible bond or an equity issue’.
It is anticipated that the funding will be executed at subsidiary level, with the Tees Valley Lithium vehicle (currently wholly owned by Alkemy) raising the capital.
Alkemy chair Paul Atherley described it as “a major step forward” for the company’s Tees Valley Lithium project, which the company believes can become Europe's largest independent lithium hydroxide refinery.
“Securing this funding will allow us to complete the vital FEED stage and progress towards unlocking the full potential of this strategically important project," Atherley said in a statement.
“The future looks extremely bright for TVL as we work to meet the growing demand for battery-grade lithium in Europe."
The convertible bonds are expected to include mandatory conversion terms, triggered in line with a potential IPO of the Tees Valley Lithium unit in 2025.
In London, Alkemy shares traded up 29.5p or 69% to 72p.