US fund backs lithium hopeful

US-BASED institutional investor Arena Investors has agreed to make some A$18.3 million available to advance Lithium Australia’s first large-scale SiLeach pilot plant and for recommissioning of a lithium-ion battery factory.

US fund backs lithium hopeful US fund backs lithium hopeful US fund backs lithium hopeful US fund backs lithium hopeful US fund backs lithium hopeful

The funding agreement comes days after the Adrian Griffin-headed company formally closed a deal to acquire the Very Small Particle Company and its Queensland-developed technologies.

The Arena convertible note facility has face value of A$21 million, and will be issued by the ASX-listed lithium hopeful at a discount of 13%.

The notes are unsecured and will be drawn-down in six separate tranches, each with a 12 month maturity.

An initial $3 million will be made available once the deed is signed, with a further $4.3 million to be drawn 45 days later, assuming shareholders back the deal.

The balance will be made available over four additional tranches.

Arena will also be entitled to options equal to 40% of the face value of the notes exercisable at a price e...