Alita Resources Ltd. said July 25 that it issued 50 million new ordinary shares to Jiangxi Special Electric Motor Co. Ltd.'s subsidiary Weier Antriebe und Energietechnik GmbH priced at 20 Australian cents per share, amounting to gross proceeds of A$10 million, and 500,000 shares as placement fee shares pursuant to a conditional placement.
The conditional placement increased Alita's issued shares to 1,476,422,411 from 1,425,922,411. Jiangxi's interest in Alita is 9.06% of the total issued capital.
Alita and Jiangxi also signed a term sheet to progress the formal terms of their joint venture to produce and sell battery-grade lithium hydroxide and other lithium products. The joint venture allows Alita to participate in the downstream lithium products market without incurring capital costs and exposure to the risk associated with the construction of a conversion facility.