ASX-listed Mali Lithium has announced that it has obtained binding commitments from institutional and sophisticated investors for a capital raising of A$64 million to fund the acquisition of an 80% interest in the Morila gold mine.
The company received strong support from existing major shareholders and a range of new institutional investors, including a strategic investment from leading West African gold miner, Resolute Mining Limited.
Mali Lithium executive chairman, Dr Alistair Cowden, commented: “We are delighted with the support from institutional and sophisticated investors and in turn the strong endorsement of the Morila Gold Mine acquisition. We welcome our new shareholders and are very appreciative of the support that our existing shareholders continue to provide.
“We are particularly pleased to welcome Resolute Mining Limited as a shareholder. The opportunity to develop a strategic partnership with Resolute in Mali will be investigated in the coming months.
The acquisition of Morila represents a watershed moment for the Company. In becoming a gold producer with a significant Mineral Resource base, we intend to build shareholder value through near term production growth and increasing mine life. This fund raising is an important step in the process as it enables the completion of the acquisition of Morila.”
Funds raised in excess of the Morila Transaction purchase price will be applied to the following growth activities:
- Completion of a new mine plan;
- Drilling to infill and extend resources;
- The re-start of open pit mining, initially at the N’Tiola and Domba satellite pits;
- Plant and infrastructure works, principally tailings dam and power station;
- Preparation for a re-start of mining at the Morila pit (dewatering and earthworks);
- Preparation of a mining permit for the company’s Koting discovery; and
- General working capital.
After completion of the Morila Transaction, Mali Lithium will apply cashflow from the existing tailings operation and satellite pit mining to fund its growth activities.