ioneer Ltd (ASX:INR) (OTCMKTS:GSCCF) (FRA:4G1) is undertaking a fully underwritten institutional placement to sophisticated, professional and institutional investors to raise A$60 million to help accelerate construction of the Rhyolite Ridge Lithium-Boron Project in Nevada, USA.
The placement is another key milestone as it can accelerate the development of Rhyolite Ridge once the necessary US Federal and State permits to commence construction are received and these are expected in the fourth quarter this year.
A final investment decision (FID) is expected in late 2021, with construction starting upon receipt of the final permit.
Another key milestone
Ioneer managing director Bernard Rowe said: “ioneer has continued to make significant progress in de-risking the project since completing the bankable feasibility study, through advancing engineering work to a near construction-ready stage.
“A number of critical milestones have been achieved, including the submission of the Rhyolite Ridge Plan of Operations, forming a partnership with Caterpillar regarding equipment and services to be used at the project, and the successful production of battery-grade lithium hydroxide at our pilot plant.
“The equity raising is yet another key milestone for the company and ensures it can accelerate the development of Rhyolite Ridge once the necessary Federal and State permits have been received in the fourth quarter of this year.”
Construction-ready by end of year
ioneer chairman James Calaway added: “Rhyolite Ridge continues to demonstrate it is a world-leading lithium project and is the most advanced lithium development project in the US.
“We are committed to sustainability and are poised to become a major supplier of critical materials vital to a zero-carbon future and in combating climate change.
“The placement announced today ensures that we can streamline our time to production and be construction-ready by the end of 2021.”
Placement details
The placement of around 158 million ordinary shares will be issued using ioneer's 15% placement capacity pursuant to ASX Listing Rule 7.1, and therefore shareholder approval is not required for the issue of new shares.
The new shares will be issued at a fixed price of A$0.38, representing a discount of:
- 13.6% to ioneer’s last closing price on 2 March 2021 of A$0.440; and
- 16.9% to the 10-day volume-weighted average price (VWAP) of A$0.457.