Lithium Australia shaking the tin

LITHIUM Australia is looking to raise up to A$6.5 million via a partially underwritten one-for-six rights issue, at a 28% discount to its recent trading, to fund its exploration and technology interests in the battery metals space.
Lithium Australia shaking the tin Lithium Australia shaking the tin Lithium Australia shaking the tin Lithium Australia shaking the tin Lithium Australia shaking the tin

Lithium Australia is seeking up to $6.5M.

Haydn Black


CPS Capital will underwrite the 6c per share raising to the tune of $1.5 million, and the directors at the Adrian Griffin-led company have indicated they will take up their rights. 
One new two-year 12c option will be included for every two shares subscribed for.
The deal will see up to 110 million shares issued adding to the 479 million shares already in the market. 
The largest share of the money, between $400,000 and $2.5 million, will be directed towards its downstream ambitions at the VSPC pilot plant operations in Brisbane and a new alliance with DLG Battery Co, said to be one of the 10 largest battery manufacturers in China.
The company recently entered into a letter of intent with DLG to establish a 50:50 venture that can supply and sell DLG lithium-ion batteries, packs and modules in Australia, and form a technology alliance that will fast-track the commercialisation of VSPC's patented cathode powders for use in DLG batteries, and ultimately to an Australian DLG/VSPC battery for both local and global markets, and ultimately expand battery-recycling solution.
A formal agreement is expected by the end of the month. The deal includes the issue of 12.5 million shares at 8c.
A further $250,000 to $1 million will go towards advancing its lithium chemical process developments, including the SiLeach process, where the company recently produced lithium phosphate by processing mica waste materials, producing "an exceptionally high-purity refined product, suitable for the manufacture of lithium-ion batteries". 
The company claims its production process offers significant advantages when compared with those produced using a more conventional lithium carbonate, or lithium hydroxide precursor. 
A similar amount will go towards its planned drilling at Youanmi and soil sampling at the Medcalf project in Western Australia, and for its move to take its equity in battery recycler Envirostream from 10% to 18%.
The company hopes to complete the raising in July.
It follows the company's recent decision to redeem its final Arena Investors' convertible notes with a face value of $5 million and to sell shares in Lefroy Exploration to raise $600,000. 
The company reported net cash of around $4 million at the end of March.
Shares in the company dropped 16% yesterday to close at 6.7c, valuing the entire company at around $32 million.