Pilbara MineralsLtd. is looking to raise about A$100 million to accelerate the developmentof the Pilgangooralithium-tantalum project in Western Australia, according to an April 7 statement.
The Australian FinancialReview's Street Talk earlier flaggedthe equity raising, which the publication reported aimed to raise up to A$90 million.
An A$85 million share placement, comprising 223.68 million ordinaryshares at 38 cents per share, has closed heavily oversubscribed.
The placement is to be completed in two tranches, with the secondtranche of 81.68 million shares subject to shareholder approval. The first trancheis an unconditional placement of 142 million shares.
Pilbara will also undertake a share purchase plan, to be fullyunderwritten by Blue Ocean Equities Pty. Ltd., also at 38 cents per share to raisea further A$15 million. The share purchase plan is expected to open April 15 andclose May 6.
Proceeds of the equity raising, together with Pilbara's cashreserves of A$12 million, will boost the company's cash to around A$106 million,putting Pilbara in a "very strong" position to rapidly advance Pilgangoora.
A definitive feasibility study on Pilgangoora is on track forcompletion in August.
Pilbara also said the Tabba Tabba tantalum project, the operations of which werehalted in December 2015, will remain suspended indefinitely.
The company said it does not expect to see a sustained improvementin tantalum market conditions that can support the restart of production at TabbaTabba this year.