Mineral Resources (MRL) will acquire a 5 per cent stake in Global Lithium Resources after committing $13.6 million to support the latter’s lithium aspirations.
The investment came as part of Global Lithium’s strongly supported $29.9 million placement, designed to accelerate exploration programs and associated study work at its Marble Bar and Manna lithium projects in Western Australia.
Global Lithium offered investors $1.35 per share as part of the capital raise, representing a 10.8 per cent discount to Global Lithium’s 15-day volume-weighted average price (VWAP).
MRL was issued more than 10 million shares, while 8.4 million shares were issued to other institutional and sophisticated investors as part of a $11.3 million commitment.
Support also came from existing shareholder Suzhou TA&A Ultra Clean Technology, while a $700,000 placement was committed to by current Global Lithium directors.
“As Global Lithium continues to advance our growth strategy with a significant West Australian lithium portfolio in Tier-1 locations, we are delighted to welcome Mineral Resources as a cornerstone investor in this capital raising,” Global Lithium non-executive chair Warrick Hazeldine said.
“Alongside Suzhou TA&A, who continues to maintain their 9.9 per cent stake, the board is very excited about the depth of knowledge and lithium industry experience within the company and through its key stakeholders.”
Global Lithium has defined an inferred mineral resource of 18.4 million tonnes at 1.06 per cent lithium oxide across Marble Bar and Manna, which are located in the Pilbara and Goldfields regions of WA respectively.
Global Lithium has approximately 60,000m of reverse circulation (RC) drilling planned at Marble Bar as part of its first quarter 2022 exploration program. The company acquired an 80 per cent interest in Manna from Breaker Resources in December 2021.