AJM Capital Raising, page-4

Western Australian lithium miner Altura Mining is putting the finishing touches on a $150 million-plus equity raising designed to dramatically reduce the company's debt.
It is understood Altura Mining boss James Brown and his bankers spent part of the weekend shoring up support from a handful of early institutional backers, in an effort to have the deal underwritten and ready to launch this week.
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Battery metals play Altura Mining has two brokers lined up for its mooted equity raising.  Bloomberg
Funds were told Altura Mining wanted to raise equity to reduce its hefty debt load from north of $200 million to about $30 million and ensure it was financially fit enough to ride out the period of low lithium prices.
Its pitch is understood to have been relatively straight forward. Altura reckons its Altura Lithium project, located south of Port Hedland, is as good as any in the business thanks to its high quality ore, low cost production and shareholder approved offtake agreement.
The group's problem, however, is a debt laden capital structure designed at a time when lithium prices and forecast prices were much higher, which has Altura in breach of its covenants and at the mercy of its lenders.

While's we're yet to see numbers for the year to June 30, Altura flagged a net current asset deficit worth $179.19 million at December 31 and its directors and auditors both flagged matters relating to its ability to continue as a going concern.
Altura has since managed to kick its debt back to August 2023, extending a $US161 million ($244 million) loan held with sharp-nosed fund managers Castlelake, CarVal, Nomura and Clearwater Capital.

It's also been able to put out a few spot fires with a small equity raising and debt covenant waivers and a standstill, however needs a more meaningful recapitalisation to get back on stable footing.
Boutique advisory firm Azure Capital is advising Altura Mining on its recapitalisation options, which are steaming towards a large discounted equity raising.
Stockbrokers Canaccord Genuity and Aitken Murray Capital Partners are expected to handle the deal.
Altura Mining shares last traded in August at 7¢ each to value the company's equity at $209 million. The group produced 46,316 wet metric tonnes of lithium concentrate in the June quarter at an average cost of $US369 a tonne.

There you go holders....not going bust.....Great news IMO...Imagine AJM with very small debt ..Big Winner ..IMO


Good luck