The raising, managed by CPS Capital, was priced at 6.5c, a 21% discount to recent trading, plus a one-for-two option priced at 10c expiring in three years.
The directors are seeking approval for $100,000 worth of shares.
The primary focus for the funds is its Envirostream battery recycling business to expand its facilities in Victoria to recover metals such as aluminium, copper, cobalt and nickel, and its VSPC advanced cathode powders arm that is targeting lithium-ferro phosphate battery inputs.
It recently moved to 100% ownership of Envirostream, and appointed Lycopodium to provide support a definitive feasibility study for a 10,000 tonne per annum LFP manufacturing facility in either Queensland or the US.
Bauk, Lithium Australia's chair, said the placement meant the company would not need to further draw down on its at-the-market subscription agreement with Acuity Capital in the near future.
It recent drew down a further $930,000 under the 2017 controlled placement agreement at 7.3c.
The junior had $4.8 million cash and listed equities in Charger Metals and BlackEarth Minerals worth $5 million at the start of July.
Some funds will also support its LieNA low-grade spodumene processing technology, and SiLeach mica recovery tech.
It also has a 20% stake in a legacy exploration interest at Galan Lithium.
Lithium Australia shares closed yesterday at 7.7c, valuing it at $86 million.
