Oceana Lithium’s $667,000 Placement Priced at 2.3 Cents per Share
Oceana Lithium Limited has successfully raised $667,000 through a discounted share placement, attracting strong support from institutional and high-net-worth investors. The funds will accelerate exploration and development across its Australian and Brazilian lithium assets.
- Placement raised $667,000 via 29 million shares at 2.3 cents each
- Shares issued at ~30% discount to last closing price
- Strong demand from institutional, sophisticated, and family office investors
- Proceeds earmarked for project advancement and working capital
- Broker and consultant options subject to shareholder approval
Capital Raise Details
Oceana Lithium Limited has announced a placement to raise $667,000 before costs by issuing 29 million shares at 2.3 cents each. This price represents a notable discount of approximately 30% to the company’s last closing price of 3.3 cents and about 21% below the 15-day volume weighted average price. The discounted pricing reflects a strategic move to secure committed funds swiftly from a mix of new and existing investors.
Investor Support and Participation
The placement attracted strong bids from institutional and sophisticated professional investors, alongside new Australian high net worth and family office participants. Non-executive Chairman Martin Helean has also committed to participate in the placement, signaling confidence from the company’s leadership. The shares will be issued under the company’s existing placement capacity, with settlement expected by the end of May 2025.
Use of Funds and Strategic Outlook
Proceeds from the placement will be directed towards advancing Oceana’s lithium projects in Australia and Brazil, including the Solonópole Project in Ceará, Brazil, and the Napperby and Bangemall projects in Australia. The funds will also support working capital needs and enable the company to evaluate new complementary project opportunities. This capital injection aims to maintain momentum in exploration activities and position Oceana to capitalize on lithium market demand.
Broker and Consultant Incentives
Westar Capital acted as lead manager for the placement and will receive a 6% cash fee on funds raised, along with 5 million options exercisable at 5 cents with a three-year expiry. Additionally, Oceana plans to issue 8 million options to consultants assisting with future initiatives, both subject to shareholder approval. These incentives align the interests of brokers and consultants with the company’s growth trajectory.
Looking Ahead
Chairman Martin Helean expressed optimism about the company’s position following the capital raise, emphasizing the ability to progress existing assets and explore new opportunities. Shareholders and market watchers will be keen to see how Oceana leverages this funding to deliver exploration results and create value across its portfolio.
Bottom Line?
Oceana Lithium’s latest capital raise sets the stage for renewed exploration momentum, but investors will watch closely for tangible progress and shareholder approval outcomes.
Questions in the middle?
- How will the company prioritize spending across its Australian and Brazilian projects?
- What are the timelines for upcoming exploration updates and results?
- Will shareholders approve the issuance of broker and consultant options?
