Lithium developer Pilbara Minerals is planning to finish of its funding campaign for the Pilgangoora project in Western Australia by raising up to $92 million.
The equity raising involves a placement of up to 220 million shares at $0.35 each to raise $50 million and a previously announced $US20 million ($27 million) commitment from off-take partner, China’s Jiangxi Ganfeng Lithium.
Pilbara announced it would also undertake a share purchase plan to Australian and New Zealand investors to raise up to an additional $15 million, potentially taking the raising up to $92 million.
Proceeds from the raising will be used to fund development of the Pilgangoora lithium-tantalum project, one of Australia hottest prospects in the emerging metals sector.
Funds will also be used for corporate and exploration costs, interest costs, management and liquidity reserves and general working capital.
The raising also follows Pilbara’s recent $US100 million bond issue, which it announced the completion of in the past week.
The combined funding is “expected to provide a fully-funded solution to rapidly advance development of the Pilgangoora project to full scale operation, with commissioning scheduled for the first quarter of 2018,” Pilbara outlined in an ASX statement.
Pilbara’s shares will be in a trading halt until closure of the placement, expected on June 19.