Zinnwald Lithium PLC (LSE:ZNWD, OTC:ZNWLF) has launched a fundraising campaign to bring in at least £3 million to support the development of its lithium project in eastern Germany, following a positive pre-feasibility study earlier this year.
The raise, which combines a placing and direct subscriptions from existing shareholders, is being conducted at 5p per share, a 13.8% discount to the stock’s 20-day average.
The company is also planning a retail offer to give smaller shareholders a chance to take part on the same terms.
The bulk of the funding is being provided through a £2 million commitment from AMG Lithium, a subsidiary of Dutch-listed AMG Critical Materials, and a £0.42 million subscription from investor Mark Tindall.
Zinnwald is targeting a further £0.6 million through a placing arranged by brokers Oberon and Tamesis. Investor Henry Maxey, already holding a 14.6% stake, has signalled his intention to contribute £0.5 million to the placing.
Proceeds will be used to progress permitting, carry out project optimisation work, and support ongoing land negotiations and team expansion in Germany. The company said it would also be used for general working capital.
Zinnwald’s latest study outlined plans to scale lithium hydroxide production from 18,000 to over 35,000 tonnes per year, with a mine life exceeding 40 years and a pre-tax net present value of €3.3 billion.
The company said the new funding would help to de-risk the next stages of development.