ioneer in A$60m capital raise for Nevada project

ioneer in A$60m capital raise for Nevada project
Mining News Pro - ioneer on Thursday announced plans for a A$60-million capital raise to accelerate construction of its Rhyolite Ridge lithium/boron project, in Nevada.

The company has unveiled a fully underwritten institutional placement to sophisticated, professional and institutional investors, priced at 38c a share, representing a discount of 13.6% to the company’s last closing price.

Some 158-million shares would be issued under ioneer’s existing placement capacity, meaning that shareholder approval would not be required.

Proceeds from the capital raise would go towards funding advance detailed engineering and vendor engineering, environmental research and consulting expenses, discretionary substantive pre-construction activities, and towards working capital.

“ioneer has continued to make significant progress in de-risking the project since completion of the bankable feasibility study through advancing engineering work to a near construction ready stage,” said MD Bernard Rowe.

“A number of critical milestones have been achieved, including the submission of the Rhyolite Ridge plan of operations, forming a partnership with Caterpillar regarding equipment and services to be used at the project, and the successful production of battery grade lithium hydroxide at our pilot plant.

“The equity raising is yet another key milestone for the company and ensures it can accelerate the development of Rhyolite Ridge once the necessary federal and state permits have been received in the fourth quarter of this year.”

A definitive feasibility study into the Rhyolite Ridge project estimated that it would require a capital investment of $785-million to produce 20 600 t/y of lithium carbonate, converting in the fourth year of operation to 22 000 t/y of battery grade lithium hydroxide and 174 000 t/y of boric acid, over a mine life of 26 years.

ioneer is hoping to be construction ready at the end of 2021.

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