Global Lithium attracts Mineral Resources to register with $13.6m buy-in

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Stuart McKinnonThe West Australian
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Global Lithium non-executive director Dianmin Chen, chairman Warrick Hazeldine and non-executive director Jamie Wright. at the ASX debut of the company in May.
Camera IconGlobal Lithium non-executive director Dianmin Chen, chairman Warrick Hazeldine and non-executive director Jamie Wright. at the ASX debut of the company in May. Credit: Iain Gillespie/The West Australian

Mineral Resources will pump $13.6 million into Global Lithium as part of a $30m placement by the aspiring lithium miner.

The Chris Ellison-led miner and mining services company will emerge with a 5 per cent stake in Global Lithium as a result of its investment.

The stake gives MinRes exposure to early stage lithium development assets in the Pilbara and Goldfields where it already has existing operations.

Global’s raising will also be supported by a $4.3m investment by China’s Suzhou TA& A Ultra Clean Technology to maintain its 9.9 per cent stake in the company.

Meanwhile, directors of the company will subscribe for $700,000 worth of new shares in the placement which is priced at $1.35 representing a 15.4 per cent discount to the company’s last traded price of $1.595.

Together with existing cash reserves, the raising is expected to boost the company’s coffers to $39.1m and see it fully funded for the next 18 months.

Specifically the cash will be spent on further exploration and studies at the company’s flagship Marble Bar project and its recently acquired Manna project 100km east of Kalgoorlie.

Global was among the top five initial public offerings of 2021 after listing at 20¢ in May, closing at 28¢ after its first day of trade and ending the year at $1.13.

Euroz Hartleys and Argonaut are joint lead managers to the raising.

Global shares were up 8¢, or 5 per cent, to $1.675 at 7.30am.

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