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(Sharecast News) - CleanTech Lithium said on Friday that it had conditionally raised gross proceeds of about 4.77m through a placing to support work at its Laguna Verde lithium project in Chile and provide working capital while it selects a strategic partner.
The AIM-traded company said it would issue 79,510,000 new shares at 6p each, representing about 25.82% of its enlarged share capital following the first tranche.
The placing was conducted in two tranches, with a firm placing of 39,170,424 shares raising about 2.35m and a conditional placing of 40,339,576 shares raising about 2.42m, subject to shareholder approval.
CleanTech said investors in the placing would receive one warrant for every two placing shares subscribed for, with each warrant exercisable at 9p, a 50% premium to the issue price.
The warrant grant remained conditional on shareholder approval and consent from the Jersey Financial Services Commission.
The company said the majority of the placing shares were taken up by current long-term institutional investors, existing shareholders and new investors.
Athos Capital, a substantial shareholder with an existing interest of about 22.3%, subscribed for 33,333,333 conditional placing shares, making its participation a related-party transaction under AIM rules.
Net proceeds would be used to fund licence acquisition costs at Laguna Verde, start environmental impact assessment work, continue refinement of direct lithium extraction processes and engineering configurations, support trade-off analysis for capital and operating cost optimisation, fund ASX dual-listing costs and provide working capital.
Chief executive Ignacio Mehech said: "I want to extend my thanks to all shareholders and new investors who have supported CleanTech Lithium in this oversubscribed placing.
"These funds will allow the company to both consolidate and progress our flagship Laguna Verde project and maintain operations whilst the process to select a strategic partner is in progress."
He added that June would be a "busy month", with meetings in Asia with battery value chain industry leaders interested in the Laguna Verde strategic partner process, followed by meetings in the US and attendance at the Fastmarkets event in Las Vegas.
CleanTech said application had been made for 103,635,099 shares, comprising the firm placing shares and 64,464,675 conversion shares, to be admitted to AIM, with trading expected to begin on 10 June.
Following that admission, the company would have 307,983,841 shares in issue, with no shares held in treasury.
At 1137 BST, shares in CleanTech Lithium were down 21.52% at 6.2p.
Reporting by Josh White for Sharecast.com.
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