Atlantic Lithium Ltd, formerly IronRidge Resources Ltd, said a priority rights issue offer seeking to raise up to A$7.2mln (£3.9mln) for its gold spin-off company has been sent to eligible shareholders.
Shareholders last week approved plans to demerge the company's gold assets into newly created unlisted vehicle Ricca Resources Ltd.
READ: IronRidge Resources to become Atlantic Lithium as it demerges gold assets at upcoming AGM
Following the demerger, Ricca Resources will have a cash balance of about A$14.2mln before costs, including start-up capital of A$7mln provided by Atlantic.
Atlantic also said ministerial approval has been received from Chad for the transfer of the Chadian gold tenements to Ricca Resources.