Lithium Universe Limited has secured $900,000 through a placement with existing investors to fund working capital and progress key projects including the Brownsville Lithium Refinery PFS and innovative metal recycling technologies.
- Placement raises $900,000 at 30% discount
- Funds to finalise Brownsville Lithium Refinery PFS
- Advances silver extraction and gold-copper e-waste projects
- Placement split into two tranches with shareholder approval pending
- Lead manager remuneration subject to shareholder vote
Capital Raise Targets Brownsville Refinery Progress
Lithium Universe Limited (ASX:LU7) has secured $900,000 in a two-tranche placement to sophisticated and professional investors, primarily existing shareholders, to fund working capital and advance its strategic growth initiatives. The first tranche of 242 million shares, raising approximately $848,000, is expected to settle on 20 August 2026, while the second tranche of nearly 15 million shares, raising $51,500, awaits shareholder approval at a meeting scheduled for September.
The placement shares are priced at $0.0035 each, representing a 30% discount to LU7’s last closing price and a 36% discount to the 15-day volume-weighted average price. Participants will also be offered free attaching options exercisable at $0.008, expiring in August 2028, subject to approval. Lead manager 62 Capital will receive a 6% fee paid in shares and options, plus 20 million options, also pending shareholder sanction.
Funding to Finalise Brownsville Lithium Refinery PFS
The freshly raised capital will support the finalisation of the Pre-Feasibility Study (PFS) for Lithium Universe’s Brownsville Lithium Refinery Project in Texas. This refinery is designed as a smaller-scale, battery-grade lithium carbonate plant targeting the burgeoning North American electric vehicle market, particularly lithium iron phosphate (LFP) battery manufacturers. Positioned near the Port of Brownsville, the project aims to capitalise on favourable logistics, low labour costs, and U.S. policy incentives such as the Inflation Reduction Act.
Chairman Gernot Abl expressed confidence in the placement outcome, highlighting the strong shareholder alignment and the company’s commitment to advancing the Brownsville refinery alongside its complementary projects. CEO Iggy Tan and his team are tasked with delivering the PFS and pushing forward commercialisation activities.
Advancing Sustainable Metal Recovery Technologies
Beyond lithium refining, Lithium Universe is advancing its Silver Extraction PV Recycling and Gold Copper Diamide Extraction projects, which focus on recovering valuable metals from end-of-life photovoltaic solar panels and electronic waste. The company’s innovative Microwave Joule Heating Technology (MJHT) enables energy-efficient delamination of solar panels, preserving high-value silicon and silver components for recovery.
Following this, the Jet Electrochemical Silver Extraction (JESE) process recovers over 95% of silver at 96% purity using minimal acid and zero heavy-metal waste, establishing a closed-loop recycling system. These technologies respond to soaring silver demand driven by photovoltaics and AI hardware, addressing critical supply deficits.
Simultaneously, Lithium Universe is commercialising a hydrometallurgical process licensed from the University of Edinburgh to extract gold and copper from e-waste with near-complete recovery rates, low energy use, and reagent recycling. These projects collectively position LU7 at the intersection of lithium supply chain development and sustainable circular economy initiatives.
Shareholder Approval and Next Steps
The company’s next milestone is the September 2026 shareholder meeting, which will determine approval for the second tranche placement shares, the attaching options, and lead manager remuneration. The outcome will influence the timing and scale of funding available to progress the Brownsville refinery PFS and the recycling projects.
Investors will be watching how these projects advance through feasibility and commercialisation phases, particularly given the strategic importance of North American lithium conversion capacity and the growing critical metals recycling market. LU7’s twin refinery strategy in Québec and Texas, combined with its proprietary recycling technologies, aims to carve out a resilient position amid evolving supply chain dynamics.
Bottom Line?
Lithium Universe’s latest capital raise fuels key project milestones but hinges on shareholder approval for full funding and option issuance.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured as planned in September?
- How will the Brownsville refinery PFS outcomes influence project financing and timelines?
- What commercial traction can LU7 achieve with its silver and gold-copper recycling technologies amid rising critical metal demand?