Lithium Power International Ltd. completed a heavily oversubscribed placement to raise A$15 million and Canaccord Genuity (Australia) Ltd. agreed to underwrite the exercise of all the company's listed options, which will raise a further A$20.6 million.
The proceeds will allow the company to be fully funded through to the final investment decision for its Maricunga lithium brine project in northern Chile, according to a Nov. 22 news release.
The company plans to expedite payments of the remaining US$7.5 million earn-in to finalize its 50% ownership in the joint venture, contribute to pre-construction programs, and conduct exploration at its Western Australia tenements.
The company will issue 27.27 million common shares under the placement at 55 Australian cents apiece.
The 37.53 million options on issue, set to expire Nov. 24, also have an exercise price of 55 Australian cents per share.
The Maricunga project is 50% owned by Lithium Power, 32.3% by Minera Salar Blanco SpA, and 17.7% by Bearing Lithium Corp. through the acquisition of Li3 Energy Inc.