The SPP sought A$10 million but raised just a quarter of that, however with the lithium market continuing to run hot, the Paul Lloyd-led AZL has secured commitments from institutional and sophisticated investors for $10 million at 2.5c per share.
The funds will primarily be directed to its recently acquired Prairie lithium brine project
in Canada, where it is about to announce a resource upgrade ahead of starting up a pilot plant to test its proprietary direct lithium extraction technology to produce a battery-grade lithium carbonate.
It will also complete construction of its research centre in Arizona.
A prefeasibility for Prairie and a definitive feasibility study for its Big Sandy lithium clay project are both expected in December.
AZL, which wants to start construction of a commercial-scale plant in Canada next year, said support for the placement was strong.
The company acquired Prairie in Saskatchewan for scrip earlier this year and claims it is one of the most advanced DLE projects globally with an inferred 4.1 million tonnes at 111 milligram per litre resource.
The placement of shares, and one free attaching option per new share, will be split over two tranches.
The 5c options, expiring in 2025, could generate $20 million.
AZL ended the March quarter with $4.4 million cash. It raised $2.6 million under the SPP at 4.5c.
The junior's shares have traded has high as 11.5c over the past year, but hit a 12-month low of 2.6c this morning.
At the time of writing the stock was off 12% at 2.6c and was last traded at 3.5c, valuing it at $77 million.