Lithium Power International (ASX: LPI) has received binding commitments from institutional, sophisticated and professional investors to raise A$25 million through a single tranche placement.
The Placement will see the Company issue approximately 41,666,667 new fully paid ordinary shares at an issue price of A$0.60 per share.
“The result of the capital raise is an outstanding endorsement of Lithium Power’s ambition to rapidly advance the significant Maricunga lithium asset in Chile and capitalise on the rapid global shift towards the electrification of transport and infrastructure. Investing in green technologies is essential to ensuring the battery revolution and the delivery of clean, green energy that the world is eagerly awaiting,” Lithium Power’s CEO and Managing Director, Cristobal Garcia-Huidobro, said.
“The funds raised will allow Lithium Power to progress the development and accelerate the expansion of the Maricunga project, as well as general working capital purposes.
“On behalf of the company, I would like to warmly welcome new shareholders and thank existing shareholders for their ongoing support.”
Use of Proceeds
Funds raised via the Placement will primarily be used to progress with the development and expand and accelerate the Maricunga project.
Specifically, funds will be applied to the operational and pre-construction costs for the 100% consolidated Maricunga project and the increased operational compliance costs associated with the acquisition of the ownership of the Chilean and Canadian joint venture partners in the Maricunga project.
Maricunga Funding Update
The entity holding the Maricunga project, Minera Salar Blanco SA (MSB), is continuing to investigate the optimal sources of debt and equity funding available to develop the project in the most time and cost-efficient manner.
As part of this process, which is being assisted by Canaccord, MSB has received several expressions of interest in relation to debt funding, equity funding and outright acquisition of MSB, which are expected to progress during the upcoming months.
For further information please visit: https://lithiumpowerinternational.com/
