Global Lithium Resources has raised $111.4 million to support its $60 million acquisition of the remaining 20 per cent interest in the Manna lithium project in Western Australia.
An institutional placement of 49.5 million shares enabled Global Lithium to raise $100.2 million at $2.25 per share.
Global Lithium engaged Suzhou TA&A Ultra Clean Technology Co to complete a non-underwritten strategic placement of approximately 4.9 million shares. This accounted for the remaining $11.2 million.
The news comes after Global Lithium entered into binding agreements to acquire the underlying Manna project tenements from Breaker Resources, with the remaining 20 per cent stake in Manna’s lithium rights also bundled in.
Manna is an outcropping spodumene-bearing pegmatite project located in an infrastructure-rich Tier 1 mining jurisdiction. Since Global Lithium acquired an interest in Manna in late 2021, the company has delivered a maiden mineral resource of 9.9 million tonnes and is currently undertaking an extensive exploration program comprising more than 24 kilometres of reverse circulation and diamond drilling.
Managing director Ron Mitchell said the $111.4 million placement was a significant milestone.
“This raising demonstrates strong support of our conviction in our two high-quality lithium projects and management and the board’s exploration and development strategy,” he said.
“We now have the proceeds to see us through to the completion of the Manna feasibility study, which we expect to complete and release to the market in the first half of 2023.
“Proceeds raised under the placement also allow us to consolidate ownership of Manna and provide a clearer development pathway for one of the leading emerging lithium projects in Australia.”
Global Lithium is also undertaking a share purchase plan to raise an additional $10.1 million. Eligible shareholders will have the opportunity to subscribe for up to $30,000 of new shares at an offer price of $2.25 per share.
Applications for the share purchase plan must be received by November 23.