Bradda Head Lithium Ltd (AIM:BHL) is in a strong financial position to develop its existing lithium projects in Arizona and Nevada, the company said alongside its results for the six months to end-August.
During those six months, the lithium development group listed on AIM, raising US$9.6mln (£7.2mln) in pre-IPO and IPO funding, and started a drilling programme at the Burro Creek East project in Arizona.
READ: Bradda Head Lithium reports best results so far from Burro Creek East project
“The first half of the financial year has been both busy and very exciting,” said chairman Ian Stalker. “We welcome our new shareholders following the successful pre-IPO and IPO fundraises, and the company is now in a strong financial position to rapidly and efficiently develop its existing lithium projects in Arizona and Nevada.”
“The funds have been strategically deployed to fast-track our Burro Creek drilling programme, significantly increase our landholding in Arizona, and strengthen our team members with key senior appointments.
“The second half of the financial year is going to be just as busy, and we will keep our shareholders updated as we receive exploration results."
It noted that demand for US-based lithium production is forecast to increase 7,000% by 2030 from the current level and said it is in a unique position to take advantage of this growth.
The company ended the period with a cash balance of US$7.0mln. Bradda Head, which has no revenue, recorded a net loss of US$1.8mln.