...this is a HUGE discount, a caution I made earlier that such outcome is most likely what is to come ahead for many mining juniors including lithium explorers/developers. Barrenjoey, Canaccord raising for Lake Resources; 39.1pc discount Sarah Thompson, Kanika Sood and Emma Rapaport
Mar 11, 2024 – 10.39am
Lithium play Lake Resources sent out its brokers to source a $20 million shot in the arm on Monday, as its share price languishes 80.5 per cent lower than where it was 12 months ago.
Lake Resources had Barrenjoey and Canaccord Genuity seeking buyers for 214 million shares at 7¢ apiece, which was a steep 39.1 per cent discount to the last close. Morgans was mandated as the co-lead manager.
The cash call was split as a $15 million placement and a $5 million share purchase plan. Bids into the placement were due 4pm.
Fund managers were told Lake Resources would use the proceeds to strengthen its balance sheet and liquidity profile, ahead of alternative financing for its flagship – and much delayed – Kachi project.
