Lithium Plus Minerals has secured A$2.15 million through a discounted placement, backed by cornerstone investor Suzhou CATH and institutional buyers, to fund development and exploration at its Bynoe lithium project.
- A$2.15 million placement at A$0.10 per share with 16.7% discount
- Strong support from strategic investor Suzhou CATH Energy Technologies
- Funds earmarked for Lei lithium project scoping study and exploration
- Placement shares issued under ASX Listing Rules 7.1 and 7.1A
- Settlement expected 23 April, shares quoted 24 April 2026
Placement Secures Funding for Lei Lithium Project
Lithium Plus Minerals (ASX:LPM) has successfully raised A$2.15 million through a placement priced at A$0.10 per share, representing a notable 16.7% discount to its last closing price. The raise attracted strong backing from institutional and sophisticated investors, including the company’s strategic cornerstone shareholder Suzhou CATH Energy Technologies. This injection of capital is aimed squarely at advancing the Lei lithium project within the Bynoe Lithium Project portfolio.
The placement will see the issue of 21.5 million new shares, increasing the total shares on issue to approximately 154.3 million. The shares will be issued under the company’s existing placement capacities governed by ASX Listing Rules 7.1 and 7.1A, with settlement scheduled for 23 April and trading expected to resume on 24 April 2026.
Focus on Scoping Study and Project Development
The funds raised will primarily support the completion of a scoping study for the Lei lithium project, with a targeted finish in the fourth quarter of 2026. This study is a critical step in assessing the project’s viability and preparing it for potential development. Additionally, the company will continue exploration activities across the broader Bynoe Lithium Project, which spans 11 granted tenements covering 297 square kilometres on the Cox Peninsula near Darwin.
CEO Andrew Haythorpe, appointed just days before this placement was announced, emphasised the strong market confidence reflected in the raise. His recent appointment, marking a strategic leadership shift, aims to accelerate Lei project development and was detailed in a prior update where he outlined plans to move the project toward production readiness. The placement proceeds will also fund engagement with key consultancies to refine internal studies and advance downstream integration plans, including a proposed flotation plant in China. This downstream processing strategy is designed to provide cost-effective access to the world’s largest battery market, enhancing the project’s commercial potential.
Environmental Progress and Capital Structure Impact
The company is progressing its Supplementary Environmental Report with submission expected in the second quarter of 2026, a necessary step to secure environmental approvals for mining activities. Lithium Plus’s recent filings highlighted ongoing environmental studies and a 20-year mining lease granted for the Lei project, underscoring the project’s advancement toward operational readiness.
While the placement dilutes existing shareholders by increasing the share count by over 15%, the discount and strong investor interest signal robust confidence in the project’s prospects. Lead manager Canaccord Genuity Australia and co-lead Richlink Capital Group facilitated the placement, with a 6% fee on funds raised.
Bottom Line?
With fresh capital secured and environmental approvals progressing, Lithium Plus is positioned to clarify the Lei project’s development path over the coming months.
Questions in the middle?
- Will the scoping study confirm the Lei project’s economic viability and attract further investment?
- How will the proposed flotation plant in China impact project economics and market access?
- What are the risks of dilution to existing shareholders given the placement discount and share increase?