Altura raises A$41.6m from Chinese battery maker for Pilgangoora

PERTH (miningweekly.com) – ASX-listed Altura Mining has signed a subscription and cooperation agreement with Chinese battery producer Shaanxi J&R Optimum Energy to raise some A$41.6-million to help pay for the Pilgangoora lithium project, in the Pilbara.

The two-tranche placement at 13.6c a share would give J&R Optimum a 19.9% shareholding in Altura and will entitle the Chinese company to appoint one director to the Altura board, provided that its relevant interest does not reduce below 15%.

The placement price represents an 8.8% premium to the last closing price of Altura shares, and a 4.6% premium to the company’s 30-day volume-weighted average price.

Altura MD James Brown, who on Tuesday welcomed J&R Optimum to the Altura share register and ultimately to the board of directors, said that the transaction significantly de-risked the Pilgangoora project and provided a strong lead to debt funding groups as the company worked towards finalising the complete financial package for the project.

“The alliance is also a significant acknowledgement of the high standard of work achieved by the Altura development team and consultants with the recently definitive feasibility study (DFS).”

The DFS estimates that the project will have a yearly ore feed rate of 1.54-million tonnes to deliver 219 000 t/y spodumene concentrate containing 6% lithium, with estimated life-of-mine cash costs of A$316/t of spodumene concentrate.

It will cost A$139.7-million to construct the Pilgangoora project and it will have a repayment period of 1.8 years.

Altura has also formed a strategic partnership with J&R Optimum, which will provide a platform for participation in not only raw material supply, but downstream processing and technology.

Altura said that the partnership provided a secure offtake for all production from the company’s operation.