How Lithium Universe’s Latest Placement Fuels Its Clean Energy Ambitions
Lithium Universe Limited has completed the second tranche of its share placement, raising $40,000 and securing shareholder approval for a significant options issuance tied to its growth strategy in lithium refining and solar panel recycling.
- Tranche 2 placement raises A$40,000 via 2.5 million shares issued to Director Iggy Tan
- Shareholders approve issuance of 56.4 million listed options linked to placements and lead manager
- Options have an exercise price of $0.008 and expire in August 2028
- Company progressing lithium refinery projects in Québec and Texas
- Innovative solar panel recycling technology targets silver recovery and sustainability
Completion of Capital Raise
Lithium Universe Limited (ASX, LU7) has successfully completed the second tranche of its recent share placement, issuing 2.5 million shares to Executive Chairman Iggy Tan. This tranche raised a modest A$40,000 following shareholder approval at the company’s December 16 General Meeting. While the capital raised in this tranche is relatively small, it marks a key procedural milestone in the company’s broader capital raising efforts announced earlier in October and November.
Options Issuance and Shareholder Support
Alongside the share placement, shareholders approved the issuance of over 56 million listed options. These options, trading under ASX code LU7OB, have an exercise price of $0.008 and expire in August 2028. They are being issued both to participants in the placement and to 62 Capital, the lead manager of the placement. This options issuance provides additional capital-raising flexibility and aligns incentives for key stakeholders as Lithium Universe advances its strategic projects.
Strategic Growth in Lithium Refining
Lithium Universe is positioning itself as a critical player in North America’s lithium supply chain by developing two lithium carbonate refineries. The flagship facility in Bécancour, Québec, is designed to produce up to 18,270 tonnes per year of battery-grade lithium carbonate, primarily targeting lithium iron phosphate batteries. Complementing this is a second refinery planned for Brownsville, Texas, which leverages a proven design to rapidly serve the growing US electric vehicle battery market. This binational approach aims to reduce North America’s reliance on foreign lithium conversion capacity, a strategic imperative given the surging demand for electric vehicles.
Innovative Solar Panel Recycling Technology
Beyond lithium, Lithium Universe is pioneering sustainable recycling solutions for photovoltaic solar panels, focusing on silver recovery. The company has acquired cutting-edge technology from Macquarie University that uses microwave energy and a novel electrochemical process to efficiently separate and recover silver and silicon from end-of-life solar panels. This closed-loop system significantly reduces energy use, emissions, and chemical waste, addressing a growing environmental challenge as solar panel waste is projected to reach tens of millions of tonnes by 2050.
Looking Ahead
While the immediate financial impact of the tranche 2 placement is limited, the shareholder approvals and options issuance provide Lithium Universe with enhanced capital tools to support its ambitious growth plans. The company’s dual focus on lithium refining and sustainable recycling technologies positions it well to capitalize on the accelerating clean energy transition in North America and beyond.
Bottom Line?
Lithium Universe’s recent capital moves set the stage for scaling its lithium and recycling ventures amid rising clean energy demand.
Questions in the middle?
- What are the detailed timelines and milestones for the Bécancour and Brownsville refinery projects?
- How will the company commercialize and scale its solar panel silver recovery technology?
- What are the potential dilution impacts and future capital needs related to the large options issuance?
