- Alpha HPA (ASX:A4N) completes a strategic $40 million placement to accelerate the development of its Alpha Sapphire project
- The company secured binding commitments from AustralianSuper Orica (ASX:ORI), as well as other significant shareholders
- The placement will issue approximately 54.8 million Alpha shares, representing 6.2 per cent of its shares currently on issue
- This means that Alpha now has $60 million to fund phases A and B of its Sapphire operation
- A4N shares are up 12.2 per cent, trading at 87.5 cents at 10:59 am AEDT
Alpha HPA (ASX:A4N) has completed a strategic $40 million placement in a bid to accelerate the rollout of phases A and B of its Alpha Sapphire project.
The company secured binding commitments from AustralianSuper Orica (ASX:ORI), as well as other significant shareholders.
The placement will issue approximately 54.8 million Alpha shares, representing 6.2 per cent of its shares currently on issue. Each share will be priced at 73 cents apiece.
This means that Alpha now has $60 million to fund phases A and B of its Sapphire operation, following its award of $30 million from the QIC Critical Minerals and Battery Technology fund announced in September.
The company reported that phases A and B should generate significant cashflows to fund a final phase C operation, which intends to expand the project significantly.
“These funds now see the Alpha Sapphire business fully funded for its first 50 crystal growing units and through to positive cash flows, with a strong platform to expand to 100 units,” A4N Managing Director Rimas Kairaitis said.
Alpha further stated that dependent on the final production rate from its existing HPA stage one facility in Gladstone, phases A and B of the next project will be either wholly or substantially supplied with HPA tablet feedstock.
A4N shares were up 12.2 per cent, trading at 87.5 cents at 10:59 am AEDT.