Global Lithium raises A$121.5m for Manna buy
PERTH (miningweekly.com) – ASX-listed Global Lithium Resources has unveiled a A$121.5-million capital raise, partly to fund the A$60-million acquisition of the Manna lithium project and the remaining 20% interest in lithium rights over tenements held by ASX-listed Breaker Resources.
Global Lithium on Tuesday unveiled an underwritten intuitional placement to raise up to A$100.2-million, including a A$19.6-million placement to shareholder Mineral Resources, which would see its interest in the company increase from 8% to 9.9%.
The company would also undertake a non-underwritten strategic placement to raise a further A$11.1-million.
The shares issued under the institutional and strategic placement will be issued at a price of A$2.25 a share, representing a discount of 13.8% to Global Lithium’s last closing price, and a 14.7% discount to the company’s five-day volume weighted average share price. The shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.
Following the completion of the share placement, Global Lithium will also undertake a share purchase plan (SPP), also priced at A$2.25 a share, with the aim of raising a further A$10.1-million. Under the SPP, eligible shareholders will be able to subscribe for up to A$30 000 worth of new shares in the company.
The SPP will open on November 2 and close on November 23.
“The placement announced, along with the accompanying SPP, allows Global Lithium to complete the Manna transaction whilst continuing to undertake value accretive exploration and study activities,” said chairperson Warrick Hazeldine.
“We believe these additional funds will drive long term shareholder value. We look forward to introducing further institutional investors to our share register.”
Global Lithium has agreed to acquire the underlying Manna tenements, in Western Australia, as well as the remaining 20% interest in the exploration rights and future mining rights to lithium and lithium associated co-minerals at Manna from Breaker Resources, which will continue to hold the precious metals rights over the tenements.
Total cash consideration is A$60-million, due at completion of the transaction, including A$20-million by way of deferred consideration relating to Global Lithium’s initial acquisition of the 80% interest in Manna in December last year, which Global Lithium agreed to pay on an accelerated basis.
Global Lithium has also granted Breaker a 1.5% net smelter royalty over all minerals mined from the tenements, excluding the Manna project area, excluding for gold, silver and platinum group metals, which will be mined by Breaker.
Global Lithium told shareholders that the company would now continue with its 20 000 m reverse circulation and 4 000 m diamond drilling programmes at Manna, working to update the Joint Ore Reserves Committee mineral resource estimate in early December.
The company is also planning a significant exploration programme at Manna for 2023.
