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(Alliance News) - Shares in Marechale Capital PLC skyrocketed on Monday after the corporate finance firm said it had increased its stake in lithium exploration and development company Weardale Lithium Ltd.
Marechale shares doubled to 3.30 pence per share on Monday morning in London.
London-based Marechale, which focuses on the hospitality and renewable sectors, now has GBP1.5 million invested in Weardale, or an 8.7% stake after subscribing for founder shares on Monday.
Weardale, which is based in Durham in the north of England, is "expected to be one of the first lithium exploration and development companies in the north of England", Marechale said.
Lithium is a key component in hybrid and electric vehicle batteries, which are becoming more sought after as governments aim to reduce carbon emissions.
"With the rise in electric vehicle manufacturing, lithium producers anticipate increasing demand for years to come," Marechale said.
Along with the recent investment, Marcheale secured the right to be awarded further warrants over Weardale shares for any involvement in future fundraising rounds.
Marechale Chief Executive Patrick Booth-Clibborn said: "This transaction is an exciting addition to the Marechale portfolio and bolsters our exposure to the renewable energy markets. As the UK and Europe set their sights on a carbon neutral future, the role of lithium in electric vehicles and green technologies will continue to grow in importance and we are delighted to have assisted Weardale Lithium as it starts to explore the presence of lithium in the north of England."
Marechale said it continues to maintain a healthy pipeline of new corporate finance projects.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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