Cassini Resources, which is trying to advance a nickel-copper-PGE sulphide deposits and gold in Western Australia, received a US$3.09 million placement from Chinese lithium-ion battery materials manufacturer, Guangzhou Tinci Materials Technology.
Announced last week, the dealwill result in the issue of approximately 68.8 million new ordinary shares at a price of A$0.061 per share. The placement price represents a 10.3% discount to the last closing price of Cassini's shares of A$0.068 per share on 14 August 2018.
Cassini says the key cornerstone investors include Mr. Xu Jinfu, Chairman and major shareholder of Chinese end-user Tinci Materials, and other investors with a track record of developing and financing battery minerals assets.
"Tinci Materials is listed on the Shenzen Stock Exchange (SHE:002709) and is a leading manufacturer and marketer for lithium-ion battery materials. Tinci Materials was one of the pioneers of electrolyte manufacturers in China for lithium-ion batteries and has successfully established business collaborations with first class international customers," says Cassini in a news release.
The funds will be used for working capital for the company throughout the feasibility study stages on the West Musgrave project and to progress its exploration stage projects in Western Australia.
Roskill, a metals and minerals research firm, says large lithium ion battery firms are seeking out and locking in raw materials. Roskill expects ". . . activity in the sector continues at a rapid pace."
Creative Commons image of Western Australia courtesy of Graeme Churchard. Written with material from Cassini Resources news release.