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- Arizona Lithium (AZL) raises $12 million to advance research and processing facilities at its Big Sandy lithium project in Arizona
- AZL originally wanted to raise $32.5 million, however, due to market conditions, it cancelled the second tranche and adjusted the price of shares from 12.5 to seven cents
- Following the raise, the company’s pro-forma cash position will be $54 million, which it says puts it in a strong position to advance Big Sandy
- The funds are set towards purchasing land for a processing plant, expansion and operation of a research centre, and securing intellectual property protection
- Emerging from a trading halt, AZL shares are down 7.06 per cent to 7.9 cents at 12:19 pm AEST
Arizona Lithium (AZL) has raised $12 million to advance research and processing facilities at its Big Sandy lithium project in Arizona.
In March, the company announced it had received commitments to raise $32.5 million through a two-tranche placement.
However, due to market conditions, the second tranche of the placement was cancelled, as agreed by shareholders at a meeting held on July 14.
As such, the original price of the shares under the placement was adjusted from 12.5 cents to seven cents, with a one-for-two attaching option exercisable at 18 cents expiring in two years.
Following the raise, the company’s pro-forma cash position will be $54 million, which it said puts it in a strong position to advance Big Sandy.
AZL recently signed a five-year lease for a lithium Research Centre in Arizona and said the fresh capital will help fund the expansion and operation of this centre.
Additionally, the funds are set towards purchasing land for a lithium processing plant at the project and securing intellectual property protection over Lithium Processing Technology.
The company is also looking to hire an expert in lithium processing technology to support its Chief Technical Officer Brett Rabe.
Around 171 million new shares and more than 85.7 million options are due to be issued under the company’s existing placement capacity with allotment of the shares expected on July 25.
Emerging from a trading halt, AZL shares dropped 7.06 per cent to 7.9 cents at 12:19 pm AEST.
