Global Lithium Resources has received $21.6m (A$29.9m) in firm commitments to fund work at its Marble Bar and Manna lithium projects in Western Australia.
The firm plans to use the proceeds from the capital raising to finance exploration programmes and associated study work at the Marble Bar lithium project (MBLP) in the Pilbara and the Manna project located 100km east of Kalgoorlie.
Western Australian mining services company Mineral Resources has committed to a $9.8m (A$13.6m) investment for a 5% interest in Global Lithium.
The firm has been issued 10.1 million shares in Global Lithium, making it a cornerstone investor in the lithium mining company.
Global Lithium non-executive chair Warrick Hazeldine said: “As Global Lithium continues to advance our growth strategy with a significant West Australian lithium portfolio in Tier-1 locations, we are delighted to welcome Mineral Resources as a cornerstone investor in this capital raising.
“We look forward to developing a long-term working relationship with Mineral Resources given the company’s unrivalled track record in successfully bringing operations into production quickly, processing of hard rock lithium ores and downstream processing.”
Global Lithium also issued 8,384,055 new shares to institutional and sophisticated investors for additional placement of $8.1m (A$11.3m).
Suzhou TA&A Ultra Clean Technology, the controlling shareholder of Yibin Tianyi Lithium Industry, subscribed for $3.11m (A$4.3m) of the placement to maintain its 9.9% stake in Global Lithium.
In exchange, Global Lithium will issue 3.2 million of its new shares to Suzhou.
Under the capital raise, Global Lithium shares have been offered at $0.97 (A$1.35) each.
Global Lithium will also issue 481,482 new shares to its directors for a A$0.7m placement. This is subject to shareholder approval.
Euroz Hartleys and Argonaut served as joint lead managers for Global Lithium’s capital raising.