WA-focused mineral exploration company, Azure Minerals Limited, has launched an underwritten $120 million two-tranche institutional placement and a non-underwritten $10 million share purchase plan (SPP) to support the exploration and development of the company’s Andover Lithium Project in Western Australia.
Tranche 1 of the placement aims to raise approximately $100 million while Tranche 2 includes shares subject to shareholder approval and is set to raise approximately $20 million.
The company’s major shareholders, SQM Australia Pty Ltd and Yandal Investments Pty Ltd, have signed pre-commitment letters to participate pro-rata in the placement.
Azure Minerals Limited Managing Director Tony Rovira stated that the underwritten institutional placement will provide a strong capital base for the project to accelerate exploration and resource drilling at Andover as the company advances towards a maiden lithium minerals resources targeted for Q1 2024.
“Additionally, the placement provides sufficient funding to progress various studies at Andover, including a scoping study which is expected be finalised in 2024.
“The placement provides a strong endorsement for Andover as one of the best lithium exploration projects globally, with abundant outcropping mineralised pegmatites and substantial widths of high- grade mineralisation intersected from limited drilling to date. The company remains incredibly optimistic about the potential scale of Andover and looks forward to realising the full potential of this exciting discovery.
“In addition to the placement, we are also pleased to offer our existing eligible shareholders the opportunity to participate in the equity raising via the SPP. On behalf of the Azure Board and management, I wish a warm welcome to our new shareholders and thank all our existing shareholders for their continued support,” said Rovira.
Eligible existing shareholders will be able to get involved through a non-underwritten SPP to raise a further $10 million at the same price as the placement — $2.40 per share.
