Lithium Australia NL (ASX:LIT) is raising up to $6.5 million via a renounceable rights issue offered on a 1 for 6 basis at 6 cents per share.
The offer includes one attaching listed option (exercise price of 12 cents and expiring 2 years) for every two new shares subscribed for under the rights Issue.
Importantly, the rights issue provides eligible shareholders an opportunity to take up new shares proportional to their shareholding or partly paid shareholding and avoid dilution.
The rights Issue is partially underwritten to $1.5 million by CPS Capital Group Pty Ltd.
Funds raised from the rights issue will be used for:
• Lithium raw materials including exploration on Youanmi and Medcalf
READ: Lithium Australia establishes 185 million tonne vanadium resource at Youanmi
• Lithium chemicals including development of SiLeach® LieNA® and L-Max®
READ: Lithium Australia produces high-purity battery material using proprietary SiLeach process
• Lithium batteries including VSPC pilot plant operations and DLG alliance
• Lithium battery re-cycling including Envirostream transaction
The company recently successfully generated lithium phosphate from waste materials using its 100% owned SiLeach® process.
Furthermore, LIT has, together with ANSTO, developed a simple means of removing impurities from the lithium phosphate resulting in an exceptionally high-purity refined product, suitable for the manufacture of lithium ion batteries (LIBs), and in particular, those with lithium iron phosphate (LFP) chemistry.