The Big Sandy Project, as a very shallow, flat lying mineralised sedimentary lithium resource and with excellent available infrastructure, has the potential to be developed with a very low environmental footprint.
Arizona Lithium raises $12m via a placement. (Credit: Анатолий Стафичук from Pixabay)
Arizona Lithium Limited (ASX: AZL, AZLO) (“Arizona Lithium”, “AZL” or “the Company”), a company focused on the sustainable development of the Big Sandy Lithium Project (“Big Sandy”, “Project”), is pleased to announce that the Company has raised $12m via a Placement to institutional and sophisticated investors, following approval by AZL shareholders at the General Meeting held on the 14 July 2022.
As per ASX release dated 31 March 2022, the Company received commitments to raise $32.5m before costs, with 185.6m shares issued as Tranche 1 under AZL’s existing placement capacity (ASX listing rules 7.1 and 7.1A). Due to current market conditions Tranche 2 of the March 2022 raise was cancelled.
Subsequently, AZL successfully raised $12m at $0.07 per share (“New Shares”) with a 1:2 attaching option with an exercise price of $0.18 and expiry two years from the date of issue (“Placement”).
The Placement was offered only to investors who previously committed to Tranche 2.
AZL Managing Director, Paul Lloyd, commented: “We are pleased to have successfully completed the Placement to raise an additional $12m to further advance the development of Big Sandy, with the funds to be applied to the land purchase for the Lithium Processing Plant, expansion and operation of the Lithium Research Centre and securing IP protection over Lithium Processing Technology.”
“With global markets conditions having changed since AZL announced the raise in March 2022, Tranche 2 of the March placement was cancelled, with the price adjusted accordingly for this Placement, positioning the Company with a substantial capital positioning of $54m post raise, facilitating the rapid development of Big Sandy, with a focus on the Lithium Research Centre and processing technologies.”
Source: Company Press Release