Global Geoscience has completed the underwritten institutional placement announced on 13 June 2018, which closed raising A$53 million to support the development of Global's 100% owned Rhyolite Ridge Lithium-Boron Project in Nevada, USA.
The placement was heavily oversubscribed, reflecting strong support for the company from a combination of existing shareholders and new high-quality institutional investors.
The equity raising will provide Global with the necessary funding to accelerate the development of Rhyolite Ridge by funding the completion of feasibility studies and drilling to infill and extend the current resource.
The Rhyolite Ridge Definitive Feasibility Study (DFS) and environmental approval process are anticipated to be complete by 2019.
The Placement of 130 million ordinary shares will be issued using Global's 25% placement capacity, with new shares issued at a fixed price of A$0.41.
The number of shares on issue prior to the Placement was 1,339,185,087; increasing to 1,469,497,083 following the Placement.
The Placement was fully underwritten by Citigroup Global Markets Australia Pty Limited. The Company has agreed to pay fees to the underwriter equal to 4.75% of the gross proceeds of the Placement. In addition to the fees payable to the underwriter, Global estimates that other costs incurred in connection with the Placement will be less than $20,000.
Rhyolite Ridge is a large, shallow lithium-boron deposit located close to existing infrastructure. It is a unique sedimentary deposit that has many advantages over the brine and pegmatite deposits that currently provide the world’s lithium.
“Global’s Rhyolite Ridge is the only lithium deposit in the world that has been demonstrated to be amenable to simple acid leach processing, reinforcing it as an economically viable alternative to spodumene and brine deposits as a major, low-cost and long-term source of lithium”, said the company in a statement.