Lithium Australia NL (ASX:LIT) is a dedicated developer of disruptive lithium extraction technologies, and the company has today launched a share purchase plan which could raise up to $12.64 million before expenses.
Eligible shareholders can acquire between $2,000 up to a maximum of $15,000 of fully paid ordinary shares without incurring brokerage or any other transaction costs, irrespective of the size of their shareholding.
The offer is priced at $0.18, which represents a 14% discount to the recently average traded price.
Adrian Griffin, managing director, commented:
"Lithium Australia has maintained a policy of creating real value for shareholders. The company has achieved this by fostering shareholder support through bonus issues of contributing shares.
"The currently listed series of contributing shares, LITCE, closed yesterday at 6.4 cents representing a considerable dividend to those shareholders that were eligible for the bonus.
"Lithium Australia recognises it is often difficult for retail investors to take advantage from discounted capital raisings which, in the most part, remain the realm of sophisticated and professional investors.
"With that in mind, we have decided to offer those shareholders on the register, at the close of business on 5 October 2016, the opportunity to expand their holdings at a discount to market, by way of this SPP invitation.
"The issue will give participants the opportunity to buy at a discount to market and without brokerage."
Break-through from Sileach™ pilot plant
The company recently achieved exceptional lithium extraction results from its six-day pilot plant program testing its 100% owned Sileach™ lithium extraction process.
Testing has been conducted at the ANSTO Minerals facility in New South Wales and 650 kilograms of ore was processed.
The campaign produced a purified lithium-containing liquor, devoid of impurities.
This purified liquor will be processed through to high-purity lithium carbonate in a second pilot campaign in the near future.
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