Piedmont Lithium raises A$29 million to progress US lithium project development

Piedmont Lithium Ltd (ASX:PLL) (NASDAQ:PLL) has raised around A$29 million to support the development of its Piedmont Lithium Project in North Carolina, USA.

The company received commitments for a US public offering of 1.8 million of its American Depository Shares (ADS), each representing 100 of its ordinary shares, at an issue price of US$6.30 each to raise gross proceeds of US$11.3 million (around A$16.2 million).

Due to strong investor demand, the underwriters also exercised their option to purchase an additional 265,000 ADS to raise additional gross proceeds of US$1.7 million (A$2.4 million).

The public offering is being made as part of an effective shelf registration statement that has been filed with the US Securities and Exchange Commission (SEC).

Private placement

The company also received commitments from existing non-US institutional and sophisticated shareholders and directors for 120 million of its fully paid ordinary shares at an issue price of 9 cents per share, which equates to the same issue price of the public offering.

This private placement will raise gross proceeds of A$10.8 million and is subject to shareholder approval at a general meeting in late July 2020.

Piedmont directors will participate in the private placement, subject to shareholder approval, by subscribing for 3,590,909 ordinary shares of the total.

Funding development

Proceeds from the public offering and private placement will be used to continue development of the company’s Piedmont Lithium Project, including a definitive feasibility study, test-work, permitting, ongoing land consolidation and for general corporate purchases.

The project is within the Carolina Tin-Spodumene Belt (TSB) around 25 miles west of Charlotte, North Carolina, in a premier location for the development of an integrated lithium business.

This is based on the project’s favourable geology, spodumene-only mineralogy, proven metallurgy and easy access to infrastructure, power, R&D centres for lithium and battery storage, major high-tech population centres and downstream lithium processing facilities.

Story by ProactiveInvestors