Lithium Ionic arranges $11 million financing for Brazil projects
Lithium Ionic (TSXV: LTH) said on Monday it plans to raise C$15 million ($11m) through a private placement with its long-term shareholders. The offering will comprise units priced at C$0.90, each of which include one common stock plus warrant to buy another share at C$1.05.
The Toronto-based lithium developer is majority owned by the general public at nearly 60%, while insiders including CEO Blake Hylands and president Hélio Diniz hold approximately 20%.
Lithium Ionic’s shares shot up 7.6% in Toronto by midday to C$0.86 apiece, for a market capitalization of C$118.8 million ($87m).
Net proceeds will go towards Lithium Ionic’s two flagship projects, Itinga and Salinas, which together cover over 141 sq. km. of Brazil’s ‘Lithium Valley’, which is known for its hard-rock lithium production.
The Itinga project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for over 30 years, and Sigma Lithium’s Grota do Cirilo project.
An integral part of the Itinga project is the Bandeira deposit, which has a measured and indicated resource of 23.7 million tonnes grading 1.34% lithium oxide (Li2O), for 783,000 tonnes of lithium carbonate equivalent (LCE).
Source: MINING.COM