Lithium Plus gains backing to accelerate Lei lithium development

Placement funds Lei's next development stage

Lithium Plus Minerals (ASX:LPM) has raised A$1.6575 million before costs at A$0.10 a share, giving its Lei direct shipping ore project fresh funding as it moves from scoping work towards a pre-feasibility study. The company is also planning a share purchase plan targeting up to A$1 million, although that additional amount is not yet secured.

The placement price represents a 9.1% discount to Lithium Plus's last traded price and a 16.6% discount to its 20-day VWAP, both measured to 28 October. The raising drew commitments from existing shareholders, sophisticated and professional investors and directors, according to the announcement, with the company describing the support as strong.

The financing follows the Lei scoping study valuation, which outlined a preliminary A$325 million post-tax NPV for the project. The new capital is intended to help turn those early-stage economics into a more detailed development case rather than fund production itself.

CATH backing comes with an approval condition

Suzhou CATH Energy Technologies is set to contribute A$230,000 as a cornerstone investor, subject to Chinese Outbound Direct Investment approval. Directors intend to participate with a further A$60,000, but that tranche requires shareholder approval at a general meeting.

The placement includes an unconditional tranche issued under ASX Listing Rules 7.1 and 7.1A, alongside a conditional tranche for the proposed director participation. Canaccord Genuity Australia and Blue Ocean Equities acted as joint lead managers and will receive standard commission plus 2 million options exercisable at A$0.15 until 15 December 2029.

Exploration and offtake work now move in parallel

Lithium Plus expects to complete the Lei pre-feasibility study by the end of the first quarter of 2027. It plans targeted drilling to improve confidence in inferred material and test for resource growth at the primary Lei pegmatite, which remains open at depth, as well as a nearby secondary pegmatite running broadly parallel to the existing deposit.

The company will also use the funds to advance discussions with potential offtake partners and other funding providers, alongside its existing non-binding offtake memorandum of understanding with Canmax. That work matters because the Lei development case still needs further technical definition, funding and commercial arrangements before it can progress beyond the study phase.

The immediate tests are therefore practical rather than promotional: whether the CATH cornerstone clears its ODI condition, whether shareholders approve the director participation, how much the SPP actually raises and whether drilling adds enough confidence or scale to strengthen the Lei development case.