Lithium Universe Ltd (ASX:LU7, OTC:LUVSF) has settled the second and final tranche of its share placement to sophisticated and professional investors for funds of A$200,000, taking total placement funds to A$1.96 million.
Tranche 2 of the placement comprised 16,666,667 fully paid ordinary shares at a price of A$0.012 per share and these have been issued today.
Approval granted
This comes after the company received shareholder approval at a General Meeting held on December 19, 2024.
At the General Meeting, shareholders also approved the issuance of one new listed option for each share subscribed to by participants under the Tranche 1 and Tranche 2 share placements.
These options have an expiry date of January 12, 2026, and an exercise price of A$0.03. A total of 178,458,334 listed options have been allotted today and these are trading under the ASX code LU7O.
The placement coincides with a pro rata non-renounceable entitlement offer in which A$163,293 was raised, including of A$51,612 (before costs) from the offer and A$111,681 from the shortfall offer.
READ: Lithium Universe completes entitlement offer to support Bécancour Lithium Refinery
Use of funds
Funds will be predominately used to further progress a definitive feasibility study for the proposed Bécancour lithium refinery in Québec, Canada, and the payment of the Bécancour land option costs.
Lithium Universe is on a mission to close the ‘Lithium Conversion Gap’ in North America by developing this green battery-grade lithium carbonate refinery.
Its primary focus is on supporting the supply chain needs of original equipment manufacturers (OEMs), particularly in the automotive sector, by converting spodumene supply into essential lithium chemicals for electric vehicle (EV) battery plants.
Closing the gap
As North America anticipates a significant increase in battery manufacturing - more than 20 major manufacturers planning to deploy an estimated 1,000GW of battery capacity by 2028 - the demand for lithium is projected to reach approximately 850,000 tonnes of lithium carbonate equivalent (LCE) per annum.
Currently, there are no operational converters in North America, with only 100,000 tonnes of LCE hard rock converters slated for construction by 2028.
READ: Lithium Universe inks MoU with Québec chemical logistics supply company Servitank
LU7's strategic approach aligns with national security goals to reduce dependence on Chinese lithium converters and onshore the lithium battery supply chain.