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Highlights
- Lithium Universe Ltd secures funding commitments of A$2.14 million with an additional entitlement offer.
- Funds target completion of the Bécancour Lithium Refinery DFS in Québec, Canada.
- Placement and entitlement offer signal progress toward an operational lithium plant.
Lithium Universe Ltd (ASX:LU7) is moving forward with funding to develop its planned lithium conversion facility in Bécancour, Québec. The company has recently received commitments to raise A$2.14 million through a strategic share placement and introduced an entitlement offer expected to raise up to an additional A$1.02 million. These funds aim to support the completion of a definitive feasibility study (DFS) for the Bécancour Lithium Refinery, an essential step for the company as it advances toward establishing a facility in Québec’s expanding lithium industry.
The company’s executive chair, Iggy Tan, expressed confidence in the funding success amid challenging market conditions. He highlighted that the placement reaffirms investor support for the company's Bécancour refinery plans, which are increasingly critical as global demand for lithium accelerates. The positive preliminary feasibility study (PFS) released on September 30, 2024, demonstrated strong potential for the refinery project, even in the face of recent market pressure on lithium prices.
The share placement is structured in two tranches, with the first issuing 155.32 million fully paid shares to raise approximately $1.94 million. The second tranche, subject to shareholder approval, will add another 16 million shares to raise an additional $200,000. Tranche 1 shares are scheduled for issuance on November 8, 2024, following the finalized commitments with professional and sophisticated investors.
To include current shareholders in this development, Lithium Universe has launched a non-renounceable entitlement offer. Eligible shareholders can acquire one share for every ten shares they hold at the same issue price of $0.0125 per share, totaling a potential additional funding of A$1.02 million. Participants in this offer will also receive a free attaching option on a 1-for-1 basis, providing further value and alignment with those supporting the company’s growth.
In his statement, Tan emphasized the commitment to strengthening shareholder engagement, affirming that the entitlement offer is intended to give existing shareholders access to similar terms as larger investors. This approach, he noted, underscores the board’s dedication to fostering shareholder value while accelerating the Bécancour project.
With the combined proceeds from the share placement and entitlement offer, Lithium Universe aims to solidify its financial standing as it navigates the next stages of the DFS. This advancement is critical for positioning the company as a key player in North America’s lithium sector, and as it progresses toward establishing a stable, operational lithium conversion plant in Québec.
