$6.5m placement for Plymouth

Plymouth Minerals has tapped investors for $6.5 million through a strongly supported share placement to develop its San Jose lithium project in Spain.

The company will issue 36.4 million shares at 18 cents each, a 12.8 per cent discount, with demand coming from domestic and international institutional investors.

Proceeds from the placement will be used to complete the feasibility study for the San Jose project.

Once the feasibility study is complete, Plymouth’s stake in the project will increase to 75 per cent.

Managing director Adrian Byass said the raising was a crucial step in advancing the project.

“The placement brings the benefit of fully funding the company for the next phase of its growth, and strengthens our institutional shareholder base, raising the profile of the company both domestically and internationally,” he said

“The San Jose lithium-tin project is exceptionally well positioned to become a key lithium production hub – it has strong lithium mineralisation in an open pit, low strip setting, excellent infrastructure, a great development partner in the large Spanish construction company Sacyr SA, and potential for significant production scale, long mine life, high margins and further upside yet to be factored in.”

Hartleys and Canaccord Genuity acted as joint lead managers to the placement.