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Lithium Australia secures A$6.3m in funding

16th December 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Lithium Australia has secured A$6.3-million in funding from The Lind Global Macro Fund to fund growth of the company’s Soluna Australia battery business, and the commercialisation of the company’s cathode business, and the growth of its battery recycling business.

Australian Lithium on Monday said that Lind would invest an initial A$3-million by way of a secured convertible loan, and a A$100 000 share placement.

The funding agreement includes provisions that allow for the conversion of securities outstanding into fully paid ordinary shares, optional cash payments by Australian Lithium, or early repayment, subject to Lind’s buy-back conversion rights for up to 30% of the outstanding face value.

Lind will also subscribe for shares for up to A$3.4-million over a 12-month period, by way of pre-payments ranging from A$100 000 to A$300 000 a month for 12 months, which can be extended for an additional 12 months by agreement.

As part of the consideration payable for the funding agreement, Lithium Australia will issue 33.33-million options to Lind, with an exercise price of 5.5c each and an expiry date of three years from issue.

Security will be provided to Lind by way of a general security agreement, and the issue of 15-million collateral shares that will be credited at the end of the funding agreement.

Lithium MD Adrian Griffin on Monday said that the company has made a significant transition during 2019 towards a more diversified, revenue producing business in one of the world’s fastest growing sectors.

“This funding agreement will improve the company’s balance sheet, allowing us to grow our business in ways that are environmentally responsible and sustainable. The Lind Partners has been a long-time supporter of Lithium Australia and its directors, and we are pleased to continue our relationship.”

Edited by Creamer Media Reporter

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