The Global Lithium Resources Ltd (ASX: GL1) share price has come out of a trading halt on Monday. This comes after the emerging lithium company announced an update on its recent capital raise.
During early morning, Global Lithium shares reached an intraday and near record high of $1.825. This is slightly under the all-time high of $1.84 achieved on 20 January.
At the time of writing, Global Lithium shares have since retraced to $1.71, up 7.21%.
Image source: Getty Images
Global Lithium completes placement
Investors are buying up Global Lithium shares as the company seeks to progress its activities at Marble Bar and Manna Lithium Project.
According to its release, Global Lithium announced it has received firm commitments for a $29.9 million capital raising.
The company highlighted that it had strong support from global institutions as well as the introduction of cornerstone shareholder, Mineral Resources Limited (ASX: MIN). The latter is committing to invest $13.6 million for a 5% interest in Global Lithium after the capital raising is completed.
The placement will see approximately 22.18 million new ordinary shares issued at a price of $1.35 apiece. This represents a 10.8% discount to the 15-day volume-weighted average price (VWAP) before going into a trading halt.
The company will primarily use the proceeds to underpin the acceleration of its exploration programs and associated study work. This relates to the company's Marble Bar Lithium Project (MBLP) in the Pilbara and the Manna Lithium Project (Manna) located 100 kilometres east of the Goldfields.
Global Lithium non-executive chair, Warrick Hazeldine commented:
As Global Lithium continues to advance our growth strategy with a significant West Australian lithium portfolio in Tier-1 locations, we are delighted to welcome Mineral Resources as a cornerstone investor in this capital raising. Alongside Suzhou TA&A, who continues to maintain their 9.9% stake, the Board is very excited about the depth of knowledge and lithium industry experience within the Company and through its key stakeholders.
We look forward to developing a long-term working relationship with Mineral Resources given the company's unrivalled track record in successfully bringing operations into production quickly, processing of hard rock lithium ores and downstream processing.
Global Lithium share price summary
Adding to today's gains, Global Lithium shares have pushed 750% higher in the past 12 months. However, when looking at year-to-date, the company's shares are hovering around upwards of 80%.
Based on valuation grounds, Global Lithium presides a market capitalisation of around $232.77 million, with 136.12 million shares outstanding.
