Piedmont Lithium (NASDAQ: PLL; ASX: PLL) has raised US$122.5 million in a public offering, issuing 1.75 million of its American Depository Receipts (ADS) with each ADS representing 100 of its ordinary shares at a price of US$70 per ADS.
The Australian junior will use the proceeds to continue the development of its 100%-owned Piedmont Lithium project, an integrated spodumene-to-lithium hydroxide project in North Carolina, about 40 km west of Charlotte.
The financing follows Piedmont’s deal in September to supply Tesla with high-purity lithium. The initial five-year agreement will see Piedmont provide the electric vehicle maker with about a third of its planned 160,000-tonne-per-year spodumene concentrate from its lithium deposits in North Carolina. Both companies can then extend the contract for another five years. The agreement is conditional upon both companies agreeing to start deliveries of spodumene concentrate between July 2022 and July 2023.