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Lithium Producer, Altura Mining Limitedâs (ASX:AJM) securities were reinstated to official quotation today (7 February 2019), after the company released an announcement regarding a capital raising. The company had requested the voluntary suspension of its securities on 5 February 2019 to enable the Company to finalize a capital raising and this was an extension from its trading halt request. Today, after getting reinstated to official quotation, the share price of the company declined by 8.966% (AEST 1:39 PM).Â
The company has announced that it is undertaking a financing package to raise around A$28 million. The package includes a placement to institutional and sophisticated investors to raise around A$23 Mn, and it also consists of a Securities Purchase Plan for existing eligible shareholders to raise around A$5 million.
As per the companyâs announcement, the funds raised will provide a significant working capital buffer while the Company is reaching to achieve the nameplate production capacity of 220,000 tpa at its Altura Lithium Project.
While commenting on the capital raising, the companyâs Managing Director Mr. James Brown said the Company was extremely pleased with the strong support which was shown from sophisticated and institutional investors. According to him the management of the company feel confident that the companyâs existing shareholders will also look to participate in this opportunity.
As per the companyâs announcement, the Placement of 184,090,775 fully paid ordinary shares has been conducted at a price of A$0.13 per New Share which represents an 18.08% discount to the 30-day volume weighted average price for Alturaâs shares of A$0.1587. The placement is also having a free attaching option for every two fully paid ordinary New Shares issued. The New Options will have an exercise price of 20 cents and an expiry date of 28 February 2022.
While providing information about the Placement, the company has informed that it has received commitments from directors of the Company to participate in the Placement for a total of 118,924,616 New Shares and 59,462,308 New Options to raise around A$15.46 million (before costs).
Under the companyâs Share Purchase Plan (SPP) which is the part of the Financing package, the eligible Shareholders of the company will be invited to purchase up to a maximum of A$15,000 worth of New Shares at the same issue price as under the Placement, subject to an overall cap of $5 million. The SPP is going to open on 15 Friday 2019 and it will close on 15 March 2019.
According to the companyâs Managing Director Mr. James Brown, the company is âclose to achieving steady-state productionâ and it will then focus to make sure that its plant is working reliably and efficiently.
In the December quarterly report, the company had announced that it is expecting that the current quarter will deliver steady growth in the production profile, which will culminate in reaching nameplate capacity of Stage 1 as soon as possible.
In the past six months, the share price of the company decreased by 50.00 percent as on 31 January 2019. AJMâs shares traded at $0.132 with a daily volume of 5,079,095 as on 7 February 2019 (AEST 1:39 PM).
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