Lithium Universe Advances Strategic Goals with A$1.96 Million Placement

3 min read | December 31, 2024 12:00 AM AEDT | By Team Kalkine Media

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Highlights

- Lithium Universe secures A$1.96 million through a two-tranche share placement.

- Funds will support a feasibility study for a lithium refinery in Québec, Canada.

- Aligns with North America's efforts to strengthen the EV battery supply chain.

Lithium Universe Ltd (ASX:LU7) has successfully completed the second and final tranche of its share placement, raising A$200,000. This final tranche brings the total placement funds to A$1.96 million, a significant milestone in the company’s efforts to develop its green battery-grade lithium refinery in Québec, Canada.

The second tranche involved the issuance of 16,666,667 fully paid ordinary shares at A$0.012 per share. These shares, issued on December 19, 2024, followed shareholder approval granted at a General Meeting. Shareholders also approved the issuance of one new listed option for each share subscribed under Tranche 1 and Tranche 2 placements. These options, trading under the ASX code LU7O, come with an exercise price of A$0.03 and an expiry date of January 12, 2026. A total of 178,458,334 listed options were allotted on the same day.

Strengthening the Lithium Supply Chain

The share placement aligns with a broader fundraising initiative, including a pro-rata non-renounceable entitlement offer that raised A$163,293. This included A$51,612 from the offer itself and an additional A$111,681 from a shortfall offer.

Funds from these initiatives are earmarked for advancing the definitive feasibility study of the proposed Bécancour lithium refinery and covering related land option costs. The refinery is part of Lithium Universe’s commitment to addressing North America's "Lithium Conversion Gap," by producing battery-grade lithium carbonate for electric vehicle (EV) battery manufacturers.

As the automotive industry increasingly shifts to EVs, demand for lithium is projected to reach 850,000 tonnes of lithium carbonate equivalent annually by 2028. Currently, North America lacks operational lithium conversion facilities, with only 100,000 tonnes of hard rock converters expected to be constructed by 2028.

Meeting Strategic Goals

Lithium Universe’s (ASX:LU7) strategy aligns with national priorities to strengthen the lithium battery supply chain and reduce reliance on Chinese converters. With over 20 manufacturers planning significant battery manufacturing capacity in North America, the company is positioning itself as a key player in supporting original equipment manufacturers with critical lithium chemicals.

By focusing on converting spodumene supply into essential lithium compounds, the Bécancour facility could play a pivotal role in meeting the growing demand for EV batteries while enhancing supply chain resilience in North America.

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