- Eastern Iron (EFE) enters a trading halt ahead of a capital raise
- The company is acquiring the Trigg Hill Project in WA which represents an opportunity to be a key player within the global lithium market
- EFE also recently partnered with a Chinese lithium producer to jointly supply spodumene concentrate and develop Trigg Hill and other potential projects
- Details of the capital raise remain unclear but EFE will come out of the trading halt by Friday, September 17, at the latest
- Company shares last traded at 3.1 cents on Tuesday, September 14
Eastern Iron (EFE) has placed its shares in a trading halt regarding an upcoming capital raise.
The company hasn’t indicated how much it will be raising nor where the funds will be spent.
As recently announced however, Eastern Iron’s focus over the next year is on the Trigg Hill Lithium-Tantalum Project which it is acquiring from Amery Holdings through a binding heads of agreement announced in August.
The WA-based project contains multiple lithium-caesium-tantalum pegmatites and represents significant exposure into the global lithium market which is being driven by the demand for electric vehicles and a focus on carbon neutrality.
Eastern Iron will pay Amery $250,000 in cash and either $500,000 in cash or shares and must conduct at least 800 metres of drilling within 15 months.
Earlier this month, the company struck a deal with major Chinese lithium producer Sichuan Yahua Industrial Group Co’s subsidiary to jointly supply spodumene concentrate and potentially acquire and develop lithium projects in Australia and in other countries outside of China.
Further down the track, once the acquisition of the Trigg Hill Project is complete and an initial exploration target has been defined, Yahua and EFE will enter a joint venture to explore and develop the project.
Eastern Iron will remain in the trading halt until no later than Friday, September 17, by which time the details of the capital raise would have been released.
Company shares last traded at 3.1 cents on Tuesday, September 14.