Metals explorer URU Metals Ltd (LON:URU) has raised £535,000 at a signifcant premium as it looks to identify and assess various opportunities in the lithium sector
URU raised the cash through a placing of 11.9mln shares at 4.5p each; sharply higher than Friday’s closing price of 2.5p.
Major shareholder Niketo – which has a 16.1% stake in the company – subscribed for 2mln of those shares.
The cash will be used to help URU investigate possible acquisition targets in the llithium space and means it will be in a strong position to act should any “attractive proposals” present themselves.
“This placing, at a significant premium to the placing price in January 2017, represents further investor interest in the company's existing projects and our plans to expand the portfolio,” said chief executive John Zorbas.
“The new funds raised will allow the company to investigate and pursue other opportunities particularly in the lithium sector where we are reviewing a number of projects.”
Lithium has been a hot topic in recent months given the fact it’s a vital component in the lithium-ion battery which is found in, among other things, electric cars.
Industry figures released last week showed hybrid and electric cars grabbed record UK market share in January, while another report claimed sales of EVs could hit 1.7bn by 2050, accounting for almost three-quarters of the market.
The numbers prompted serial stock promoter David Lenigas to proclaim that “lithium is the new oil” in terms of its importance to the car industry.
On top of all that, US electric car giant Tesla announced this week that it is on track to start production of its highly-anticipated Model 3 later this year, which could be yet another driver for the metal and those mining it.
Shares were up 56% or 1.4p, to 3.92p shortly before market close.