Astro Resources NL (ASX:ARO) is a step closer to becoming a significant lithium clay explorer in the USA after raising gross proceeds of $3.5 million and securing commitments for $1.2 million more as part of a larger capital-raising exercise.
The company intends to use proceeds from the initial tranche of the fundraising to progress exploration programs for the Polaris and Altair lithium clay projects in Nevada, USA.
It also plans to seek other lithium-based projects that may become available within the US region in the future.
Secondary placement
Astro has also secured binding commitments for a secondary placement from sophisticated investors as well as from substantial shareholder Mining Investments Ltd and board and key management personnel.
Together, they will subscribe for shares worth $1.2 million, comprising $387,307, $509,615 and $350,000, respectively.
Clear strategy
As part of the capital raising, Astro has launched an SPP to raise up to $1.5 million before costs.
Astro’s executive chairman Tony Leibowitz said earlier this month that the company had a clear strategy to advance its key assets in the US and Australia.
“I believe that the strong response both from existing and new investors represents an overwhelming endorsement of our strategy,” he said then.
He added: “I am confident that, with the proceeds to this capital raising together with the support of our shareholders under the SPP, we can achieve our objective of becoming a major player in the USA lithium industry, as well as unlock the significant value of our Georgina Basin IOCG and Governor Broome Mineral Sands Project in Western Australia.
“This is an exciting time for the company and, with our strategy clearly articulated, I am looking forward to what should be a very busy and productive period for Astro in the months ahead, with regular news flow and updates expected across our three key projects.”