Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) is encouraged by the strong response received to a placement from sophisticated investors with commitments received to raise approximately A$930,000.
This capital raising is aligned with the recent strategic investment opportunity by EU-based InnoEnergy both of which will allow the company to advance its integrated European lithium supply strategy.
The strategy centred on the companys San José Lithium Project in western Spain, is seeking to assist in the development of a self-contained battery industry in Europe.
Infinity initially sought a lower amount and owing to the response oversubscriptions were taken.
This ensures that the company remains in a solid position and can work with InnoEnergy in advancing the San José project.
The placement issue price is 3.5 cents per share, with participants issued one attaching unlisted option for every two shares subscribed for at an exercise price of 7 cents with an 18-month term.
Strategic InnoEnergy investment
Funds raised will be used to continue project activities as well as for general working capital as Infinity progresses towards completing the strategic investment execution with InnoEnergy.
InnoEnergys potential strategic investment highlights Infinitys progression to engage with European institutions.
It is also an endorsement of the technical outcomes of a successful pre-feasibility study for the production of lithium hydroxide.
The proposed InnoEnergy investment is initially focused on direct technical work with the Phase I commitment totalling €800,000 (approximately A$1.5 million).
San José is a highly advanced lithium-tin deposit with near-term production potential.
Infinity is now benefiting from its sole focus on lithium and the wider support of European institutions in the advancement of San José.
Use of funds
Specific use of the funds is:
- The advancement of Mining Licence applications, permitting, environmental, social and regulatory aspects of Read More – Source