Pilbara Minerals (ASX:PLS) completes $61M institutional entitlement offer

• Pilbara Minerals (PLS) has raised $61 million under the institutional component of its $121 million entitlement offer
• 169 million shares were issued under this component at 36 cents per share
• The accelerated non-renounceable entitlement offer was launched at the start of this week and follows a placement which raised $119 million
• The ASX 200-lister is raising the funds to support the acquisition of Altura Lithium (ALO) which will cost US$175 million (roughly A$231.7 million)
• Through the buy, Pilbara will own a lithium project that neighbours its Pilgangoora Lithium-Tantalum Project in WA
• Next up, Pilbara is aiming to raise a further $60 million through the issue of 168 million shares at 36 cents under the retail component of the offer
• Pilbara is down 6.75 per cent and trading at 76 cents

Pilbara Minerals (PLS) has completed the institutional component of its $121 million fully underwritten entitlement offer.

The one-for-7.6 pro-rata accelerated non-renounceable entitlement offer was announced at the start of this week and follows an already-completed $119 million placement.

The institutional component raised around $61 million through the issue of 169 million shares at 36 cents per share.

Pleasingly, the offer has so far received strong support from existing institutional shareholders who took up about 96 per cent of their entitlements.

"We are very pleased with the extremely strong support for the entitlement offer
shown from our institutional shareholders. This represents a clear endorsement of Pilbara Minerals’ highly strategic acquisition of the neighbouring Altura Project on an unencumbered basis," Managing Director Ken Brinsden said.

The $121 million raise was launched to support the acquisition of Altura Mining's subsidiary, Altura Lithium (ALO).

The acquisition is costing Pilbara US$175 million (roughly A$231.7 million) and is set to position the ASX 200-lister as one of the biggest players in the lithium industry.

By acquiring the lithium company, Pilbara Minerals will gain ownership of the Altura Project, which neighbours its existing Pilgangoora Lithium-Tantalum Project in WA.

The second and final component of the entitlement offer — the retail component — is aiming to raise a further $60 million through the issue of 168 million shares at 36 cents.

The retail offer will be open from Friday, December 18 until Monday, January 11, for eligible retail shareholders.

Pilbara is down 6.75 per cent and trading at 76 cents at 11:19 am AEDT.