(Alliance News) - Zinnwald Lithium PLC on Thursday said it raised around GBP18.8 million via an equity raise in new company shares, with the proceeds set to be used to advance its lithium project in Germany.
The Germany-focused lithium development company said 180.1 million shares were bought at a placing price of 10.41 pence per share, which will be admitted to trading on the AIM market in London on or around Wednesday next week.
Shares in Zinnwald Lithium were up 22% to 10.07p each in London on Thursday morning.
After admission of the new shares, Zinnwald Lithium's issued share capital will be 473.5 million shares.
On Wednesday, it said it sought GBP14 million to support the Zinnwald lithium project in Germany, specifically towards a feasibility study for lithium hydroxide and continued exploration of the project.
On Thursday, Zinnwald Lithium said AMG Lithium GmbH subscribed to 119.0 million new shares to give them a 25% interest, based on the enlarged share capital. Existing substantial shareholder Henry Maxey subscribed for 26.3 million new shares to maintain his pre-existing 15% shareholding based on the enlarged share capital, while Mark Tindall subscribed for 8.0 million new shares to increase his shareholding to 4.2% based on the enlarged share capital.
A further 24.5 million placing shares have also been placed at the placing price with institutional and professional investors, while retail and other investors participating in a retail offer have subscribed for around 2.3 million new shares at the placing price.
Separately on Wednesday, Zinnwald Lithium announced a pretax loss for the year to December 31 of EUR2.4 million compared to EUR1.7 million in the same period a year ago. Like in the previous year, it reported no revenue.
By Greg Rosenvinge, Alliance News reporter
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Zinnwald Lithium (ZNWD)