- Eastern Iron (EFE) is set to get a $3.57 million boost to acquire and develop lithium projects in Australia
- EFE’s strategic partner, Chinese lithium producer Yahua commits to invest $1.05 million in the company in exchange for a 5.05 per cent shareholding
- The company also receives commitments from sophisticated and professional investors to raise $2.52 million through a placement
- It will issue 109.5 million shares at 2.3 cents per share and the placement comes with 21.9 million options exercisable at 1.2 cents each until January 31, 2023
- Company shares are down 1.61 per cent to trade at 3.1 cents
Eastern Iron (EFE) is set to get a $3.57 million boost to acquire and develop lithium projects in Australia.
The company announced Ya Hua International Investment and Development Co, whom it recently signed a memorandum of understanding with, will invest around $1.05 million in EFE.
As reported earlier this month, Eastern Iron partnered with Ya Hua who is a wholly-owned subsidiary of China-based lithium producer, Sichuan Yahua Industrial Group.
The companies aim to jointly supply spodumene concentrate and potentially acquire and develop lithium projects in Australia and in other countries outside of China. One of these projects are the Trigg Hill Lithium-Tantalum Project in WA which EFE is in the process of acquiring.
Yahua’s investment will be made through a placement of 45.5 million shares at an issue price of 2.3 cents. The placement also comes with 9.1 million options exercisable at 1.2 cents before January 31, 2023.
Once certain conditions are satisfied, Yahua will gain a 5.05 per cent stake in Eastern Iron.
Eastern Iron’s Chairman, Eddie King, commented on the investment.
“Given the current global demand for lithium and battery metals, we believe an investment from one of the largest lithium battery material producers in the world validates our strategy and demonstrates our willingness to provide green energy solutions for future generations.”
In addition, EFE has received commitments from sophisticated and professional investors to raise $2.52 million through a placement.
The materials stock will issue 109.5 million shares at 2.3 cents per share. Like the Yahua investment, this placement comes with 21.9 million free-attaching options which are exercisable at 1.2 cents each and will expire on January 31, 2023.
The company expects the shares and options will be issued on or around September 23.
Company shares were down 1.61 per cent to trade at 3.1 cents at 10:15 am AEST.