Lithium Australia NL raises $ 1.7 million through placement with Acuity Capital

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The proceeds from the placement will be used to market the Envirostream recycling business, finance the VSPC feasibility studies and the LieNA® pilot plant, as well as for general working capital purposes.

LIT and Acuity have agreed to increase the maximum capacity under their controlled placement agreement to $ 25 million.

(,,) is expected to raise $ 1,775,000 under its Controlled Investment Agreement (CPA) with Western Australian investment bank Acuity Capital.

According to the CPA, the company plans to issue 15 million fully paid LIT shares to Acuity at $ 0.1183 per share. Proceeds from the fundraising initiative will be used to market the Envirostream recycling business, fund VSPC feasibility studies and the LieNA® pilot plant, as well as for general working capital purposes.

The Controlled Investment Agreement with Acuity was first established in July 2017 and has provided up to $ 12.5 million in reserve capital to support LIT’s operations.

CPA increase

In addition to the share issue, LIT has agreed to increase the maximum capital available under its CPA with Acuity from an additional $ 12.5 million to $ 25 million.

In the past, the lithium company has used the facility to raise $ 12 million, which means the remaining reserve capital now stands at around $ 13 million.

The company also agreed to increase the shares held as collateral by Acuity under the CPA to 45 million by issuing an additional 30 million shares under its 7.1 listing capacity.

LIT has clarified, however, that it may cancel the CPA at any time for zero cash consideration, subject to required regulatory and shareholder approvals.

Creation of facilities

In July 2017, Lithium Australia established the CPA with Acuity, with the initial terms granting the company up to $ 5 million in back-up equity over a 29-month period.

It is important to note that Acuity Capital and the CPA have not imposed any restrictions on raising capital by LIT by other methods, and LIT retains full control over all aspects of the investment process.

The ASX-lister retains full discretion as to whether or not the CPA is used, the quantum of shares issued, the minimum issue price of the shares and the timing of each investment tranche.

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