Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) is in a trading halt with a capital raising announcement pending.
The halt will remain in place until the start of normal ASX trading on Monday, April 20, 2020, or when the announcement is released to the market, whichever occurs earliest.
Securities of INF, which is developing the San Jose Lithium Project in Spain to be part of Europe’s emerging battery value chain, last traded at 3.7 cents, up from 3 cents at close on March 19.
Investment package MOU
In advancing this strategy, the company recently signed an MOU for a multi-staged investment and assistance package with European Union’s (EU) EIT InnoEnergy.
The initial part of the package is an investment in Infinity of a staged €800,000 (about A$1.5 million) to fund Phase I of Infinity’s innovative lithium conversion process.
EIT InnoEnergy will also lead fundraising activities for Phase II of the pilot plant project with an early estimate of €1.6 million to €2.4 million or A$3 million to $4.5 million.
EIT InnoEnergy support
At the time, Infinity managing director Ryan Parkin said: “We aim to turn this MoU into a binding agreement quickly.
“The financial and collaborative agreement and endorsement of the major EU Platform Steering group (EIT InnoEnergy) will bring together project partners throughout the EU lithium-ion battery supply chain to fund and develop EU’s largest battery-grade lithium hydroxide plant.
“Our project is a critical component in the European Commission Vice President Maroš Šefčovič’s foresight to address the key strategic issue for the EU’s battery value chain, namely to develop access to raw materials and refining capacity, whilst promoting a high sustainability criteria for batteries placed on the EU market."
Financing assistance
EIT InnoEnergy can assist Infinity in securing full project financing including both equity and debt, as previously demonstrated through successful assistance in project funding within the European lithium-ion battery supply chain.
The group will support and facilitate negotiations with European off-takers through the European Battery Alliance (EBA) network.
EIT InnoEnergy will mobilise their ecosystem, including allocation of personnel, to support the development of the project as rapidly as possible.
The San José project has exceptional estimated project economics of 30 years lithium hydroxide production utilising the EU’s second-largest hard rock lithium JORC resource.