- Pilbara Minerals (PLS) has wrapped up the final component of a $240.2 million capital raise in preparation for the acquisition of the Pilgangoora lithium project
- The company has completed its retail entitlement offer, netting $60.6 million and adding to funds already raised via an institutional entitlement offer and a placement
- The combined proceeds will go towards the acquisition of the owner of Pilgangoora, Altura Lithium Operations, which is expected to be completed by the end of next week
- Shares have been trading 1.3 per cent lower at $1.14
Pilbara Minerals (PLS) has wrapped up the final component of a $240.2 million capital raise in preparation for the acquisition of the Pilgangoora lithium project.
The project is adjacent to Pilbara Minerals' existing Pilgangoora Lithium-Tantalum Project and adds to the company's strategy to become a major supplier of lithium for the electric vehicle and energy storage markets.
The company has completed its retail entitlement offer on a one-for-7.6 basis at 36 cents per new share, netting $60.6 million. Approximately 168.2 million shares will be issued under the offer and will be allotted and commence trading on January 18, 2021.
The new cash adds to funds already raised via an institutional entitlement offer and a cornerstone placement and the proceeds will fund the acquisition of Altura Lithium Operations, the owner of Pilgangoora, for US$175 million (around A$232 million).
Pilbara Minerals Managing Director and CEO Ken Brinsden said the company was wrapped with the support received from shareholders.
"We thank both our institutional and retail shareholders for their continued support, as well as AustralianSuper and RCF VII for their role in cornerstoning the equity raising."
"The entitlement offer, together with the cornerstone placement announced on Monday, December 14, 2020, provides Pilbara Minerals with the funding necessary to complete the acquisition of the neighbouring Altura Project on an unencumbered basis, thereby realising the full value of synergies and benefits for Pilbara Minerals’ shareholders that arise from this unique opportunity."
Pilbara Minerals expects the transaction to complete on or by January 22, 2021.
Shares have been trading 1.3 per cent lower at $1.14 at 12:15 pm AEDT.