Lithium Australia (ASX:LIT) is set to expedite its lithium strategy with a placement to raise A$6.5 million in addition a previously planned share issue which could bring in a further $22.5 million when required.
The $6.5 million placement at $0.14 per share would comprise a $2.5 million component to professional and sophisticated investors along with a $4 million cornerstone investment by Lanstead Capital at the same share price.
Stock in Lithium Australia was last trading at $0.165, which represents about a 75% increase from a month ago when the company firmed up plans for scoping work at various project sites and produced its first lithium hydroxide.
Lithium hydroxide is a value-added lithium chemical used for the production of lithium batteries, which in turn represents a growing market on the back of increased electric car manufacturing momentum.
Lithium Australia’s latest financing opportunity is particularly encouraging in light of the recent global market turmoil and sets up a solid platform for the company to develop its geographically diversified portfolio by exploiting a number of strategic alliances.
Beyond Australia, Lithium Australia boasts projects in the Czech Republic and Mexico, where the company’s Electra property is expected to benefit from some of the planned scoping work.
Importantly, the Landstead investment marks significant confidence in this portfolio’s potential to produce disruptive technology that surpasses the outcomes being achieved by the more conventional lithium producers.
The capability of Lithium Australia’s plan has been expanded with the recent successful production of lithium hydroxide, giving its processing package a possible paradigm shift in production revenue.
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