Cosmos Raises A$1.25M at 7% Discount to Fund EAU Lithium Acquisition
Cosmos Exploration has raised A$1.25 million through an oversubscribed placement to support its strategic option agreement to acquire EAU Lithium, positioning itself deeper in Bolivia’s lithium-rich Triangle.
- Oversubscribed placement raises A$1.25 million at $0.05 per share
- Board intends to participate with up to A$250,000, pending shareholder approval
- Funds earmarked for advancing acquisition of EAU Lithium and working capital
- Placement shares issued partly under ASX Listing Rules 7.1 and 7.1A
- Placement price set at a 7% discount to recent 15-day VWAP
Strategic Capital Raise to Fuel Lithium Ambitions
Cosmos Exploration Limited (ASX: C1X) has successfully completed an oversubscribed placement, raising A$1.25 million through the issuance of 25 million new shares priced at five cents each. This capital injection is designed to underpin the company’s ongoing efforts to secure a transformative acquisition of EAU Lithium Pty Ltd, a private Australian lithium development company with assets strategically located in the heart of the world-renowned Lithium Triangle in South America.
The Lithium Triangle, spanning parts of Bolivia, Argentina, and Chile, is globally recognised for its vast lithium brine deposits, critical to the burgeoning electric vehicle and battery storage markets. Cosmos’ move to deepen its footprint here via EAU Lithium signals a clear strategic pivot towards securing high-quality lithium resources amid intensifying global demand.
Board Participation and Shareholder Engagement
Notably, Cosmos’ Board of Directors has expressed intent to participate in the placement to the tune of approximately A$250,000, subject to shareholder approval at an upcoming General Meeting scheduled for March or April 2025. This insider participation often serves as a positive signal of confidence in the company’s strategic direction and the value proposition of the EAU Lithium acquisition.
The placement shares are being issued partly under the company’s existing placement capacity governed by ASX Listing Rules 7.1 and 7.1A, allowing Cosmos to expedite the capital raise without immediate dilution concerns. The issue price reflects a modest 7% discount to the 15-day volume weighted average price (VWAP) prior to the trading halt on 3 February 2025, balancing investor appeal with shareholder value preservation.
Partnerships and Technology Synergies
Cosmos’ Executive Chairman, Jeremy Robinson, highlighted the strategic alignment with EAU Lithium’s existing partnerships, including those with YLB in Bolivia and Vulcan Energy Resources Limited, which is known for its innovative Adsorption Type Direct Lithium Extraction (A-DLE) technology. This technology partnership is a critical component of Cosmos’ approach to unlocking lithium resources efficiently and sustainably, potentially giving the company a competitive edge in the evolving lithium market.
Funds raised will primarily cover ongoing costs related to the potential acquisition and provide working capital to support the company’s broader operational needs. The successful placement underscores strong investor appetite for exposure to lithium development projects with clear pathways to production and technology integration.
Looking Ahead
As Cosmos moves towards finalising the acquisition of EAU Lithium, market participants will be watching closely for shareholder approval outcomes and subsequent operational updates. The company’s ability to leverage its new capital and partnerships will be critical in navigating the competitive landscape of lithium exploration and development.
Bottom Line?
Cosmos’ capital raise sets the stage for a pivotal acquisition that could reshape its lithium portfolio and market positioning.
Questions in the middle?
- Will shareholders approve the Board’s participation in the placement at the upcoming General Meeting?
- How will Cosmos integrate EAU Lithium’s assets and partnerships to accelerate production timelines?
- What are the potential risks or delays associated with the acquisition and lithium extraction technology deployment?
