Global Geoscience raises $30m to advance Nevada lithium project
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Lithium play Global Geoscience has boosted its bank balance by $30 million to advance work at its Rhyolite Ridge lithium-boron project in the US state of Nevada.
The institutional placement was heavily oversubscribed, reflecting strong support from a combination of existing shareholders and new institutional investors, driven by ongoing interest in Rhyolite Ridge.
However, investors weren’t overly receptive to the news, with the stock (ASX:GSC) trading 5 per cent lower at 21c in late morning trade.
Global will spend $5 million of funds raised on completing the pre-feasibility study into stages one and two of Rhyolite Ridge and $6 million on a pilot plant program in 2018.
Work on the definitive feasibility study will receive $13 million in 2019 while $6 million has been allocated to working capital over the next two years.
The placement of 300 million shares will be issued at a fixed price of 20c, a 9.1 per cent discount to Global’s last closing price on 25 September and 8.79 per cent discount to the 15-day volume weighted average price.
Rhyolite Ridge is a large, shallow lithium-boron deposit located close to existing infrastructure in southern Nevada.
The project boasts one of the biggest lithium and boron deposits in North America and has the potential to become a strategic, long-life and low-cost source of lithium and boron.
The project has some 3.4 million tonnes of lithium carbonate plus 11.3 million tonnes of boric acid (which fetches $US750 to $US1250 per tonne).
What’s more, the project is practically a neighbour of Tesla’s gigafactory, located only 360 km away.
The raising increases Global’s cash balance to around $35 million.