Lithium Energy Ltd (ASX:LEL) has raised $6.4 million in an oversubscribed placement of 8 million shares at an issue price of 80 cents per share.
The raised funds will be used for the development of the company's Solaroz Lithium Brine Project in Argentina and the Burke and Corella Graphite Projects in Queensland.
The issue was completed within LEL's additional 10% placement capacity to new and existing institutional, sophisticated and professional shareholders investors.
Use of funds
For the Solaroz Lithium Brine Project, the primary focus post-fundraising will be on the delineation of a maiden JORC mineral resource estimate.
LEL will continue resource definition drilling and pump testing, conducting technical and feasibility studies for commercial development, and collaboratively working on the construction of a 3,000 tpa battery-grade lithium carbonate demonstration plant with Lanshen.
As for the Burke and Corella Graphite Projects, the capital raised will be directed towards completing a pre-feasibility study for the establishment of a vertically integrated Purified Spherical Graphite manufacturing facility in Queensland.
This manufacturing plant would use Burke Graphite, and potentially Corella Graphite, as feedstock.
The funding will also allow for the completion of the PSG test work program and initial metallurgical test work on Corella Graphite.