Having already secured commitments to raise A$2.14 million via a share placement, Lithium Universe Ltd (ASX:LU7, OTC:LUVSF) has raised a further A$163,293 via an entitlement offer.
Funds raised will be applied towards the completion of a definitive feasibility study (DFS) for the Bécancour Lithium Refinery in Québec, Canada.
LU7 intends to close the ‘Lithium Conversion Gap’ in North America by developing a mine-to-battery-grade lithium carbonate strategy in Canada, with direct access to US markets.
The company’s business model focuses on converting spodumene supplies under 'take or pay' agreements with OEMs.
These agreements include protective pricing mechanisms, such as floor and ceiling prices, to ensure stable margins and mitigate market volatility.
LU7 believes this approach guarantees its refinery's payback while providing OEMs with a reliable and sustainable supply of lithium chemicals.
The entitlement offer
The entitlement offer was made on the same investment terms extended to sophisticated and professional investors in the placement, offering one share for every 10 shares held by eligible shareholders at the same issue price as the placement at $0.0125.
Eligible shareholders who applied for their entitlements in full were also able to apply under a shortfall facility. The total $163,293 raised, includes $51,612 (before costs) from the entitlement offer and $111,681 from the shortfall offer.