Junior explorer Lithium Plus Minerals capitalizes on the momentum of its successful exploration activities at the Bynoe project in the Northern Territory with a newly injected A$8 million capital raise. This strategic financial move comes just weeks before the company is set to unveil its maiden resource, highlighting the anticipation building around its exploration successes.
Capital Boost from Industry Stalwarts The recent capital infusion at 40c per share was supported by existing shareholders, with significant backing from Suzhou CATH Energy Technologies. Develop Global and its managing director, Bill Beament, have also thrown their weight behind the raise, signaling growing confidence in Lithium Plus's prospects.
Develop's foray into the lithium market is not new, having recently completed a $153 million takeover of Essential Metals. This adds to their robust portfolio, with the Pioneer Dome lithium project boasting an 11.2 million tonne resource at 1.16% lithium.
A Vote of Confidence from Major Players The investment landscape is further solidified by Mineral Resources, Develop's second-largest shareholder after Beament's 19.4%, owning a 12.9% stake. Mineral Resources' recent activities in the WA lithium market underscore the sector's lucrative potential, having invested in the Bald Hill mine, taken a significant stake in Wildcat Resources, and just last week, acquired about 12% in takeover target Azure Minerals.
Accelerating Towards Resource Development Lithium Plus is not resting on its laurels with the placement funds. The company plans to allocate the $14 million towards aggressive development of its Bynoe pegmatite field assets. Recent diamond drilling results have been promising, revealing thick, high-grade stacked lithium pegmatites at the Lei prospect, with some of the highest grade and widest mineralized intervals ever recorded from the field.
Prospects for Direct Shipping Ore Operation The upcoming maiden resource is expected to bolster study work on the Lei prospect as Lithium Plus evaluates the potential for a direct shipping ore operation. Additionally, the company is keen on expediting work at the Kings Landing area, boasting multiple outcropping pegmatites in proximity to Core Lithium's Grants open pit.
Bullish Market Response The share market has responded favorably to these developments, with Lithium Plus shares climbing by 8% in the morning trade to 55c, bringing the company's valuation to $58 million. The stock's performance has seen fluctuations over the past year, ranging from 20-74c, reflective of the volatile yet opportunity-rich nature of the lithium market.
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