Arizona Lithium (ASX: AZL) said on Monday it had raised A$16.5 million (US$11 million) of equity share ahead of publishing scoping results for its Prairie lithium project in Canada.
The pricing of the raising represents at a 30% premium to the company’s closing price Friday and hints at market confidence on the upcoming results, expected to reveal an “economically robust project”, according to the company.
Shares of Arizona Lithium soared as much as 18% to A$0.046 on the news, hitting a three-week high. The stock closed at A$0.045 on Monday, which leaves the explorer and developer with a market capitalization of A$146.74 million (US$99 million).
The West Perth-based company said it would use the funds drilling at Prairie as it moves towards production in the first quarter of 2025.
It also highlighted a $663,000 investment by Navajo Transitional Energy, with which it has a strategic alliance to develop the company’s other lithium project, Big Sandy in Arizona.
The Prairie project, located in the Williston Basin of Saskatchewan, utilizes conventional oil and gas drilling and completion methods to access lithium-rich brine from aquifers about 2.3 km underground.
Earlier this month, Arizona slightly increased resources at the Prairie project to 6.3 million tonnes of contained lithium carbonate equivalent (LCE). The total is comprised of 4.5 million tonnes LCE indicated and 1.8 million tonnes LCE inferred.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
April 25, 2024
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