Zinnwald Lithium PLC on Wednesday announced it secured cornerstone commitments for a £14 million fundraising at 10.41 pence per share.
The German focused lithium development company said the fundraising is led by AMG Advanced Metallurgical Group NV, which is subscribing for a 25% stake.
Existing substantial shareholders, Henry Maxey and Mark Tindall are also subscribing for new ordinary shares at the placing price to maintain their pre-existing holdings.
The fund raise will also include a retail offer at the same price. The placing will be conducted via an accelerated bookbuild.
Proceeds from the fundraising will be used to advance the Zinnwald lithium project in Germany, towards a feasibility study for lithium hydroxide and towards the continued exploration of the project.
Separately, the company announced a pretax loss for the year to December 31 of €2.4 million compared to €1.7 million in the same period a year ago. Like in the previous year, it reported no revenue.
The stock closed 0.7% lower at 8.24 pence each in London on Wednesday.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
