Australia’s leading independent law firm, Corrs Chambers Westgarth, has advised ASX-listed Global Lithium Resources Limited (ASX: GL1) (Global Lithium) on the acquisition of 100% of the Manna Lithium Project together with a A$121.5 million capital raising.
Global Lithium is a rapidly growing lithium exploration company with a focus on two highly prospective Western Australian projects – the 100%-owned Marble Bar Lithium Project (MBLP) in the Pilbara region and the soon-to-be 100%-owned Manna Lithium Project in the Goldfields region of Western Australia.
Global Lithium acquired an 80% interest in the Manna Lithium Project from Breaker Resources NL (Breaker) in December 2021 and has now entered into an agreement with Breaker to acquire the underlying project tenements together with the remaining 20% interest in the lithium rights associated with the project. Breaker will continue to hold the precious metals rights associated with the tenements.
To fund the acquisition and provide funding for ongoing exploration activities, completion of feasibility studies and various other project-related activities, Global Lithium has launched a A$121.5 million equity raising, comprising an underwritten institutional placement, a strategic placement to existing 9.9% shareholder Suzhou TA&A Ultra Clean Technology Co and an offer to existing shareholders under a share purchase plan (or SPP).
Corrs advised Global Lithium on all aspects of the Manna Lithium Project acquisition and the capital raising. Led by partners Russell Philip and Peter Jarosek, the team drew expertise from Corrs’ corporate and energy and natural resources practices.
Commenting on the matter, lead partner Russell Philip said: “We are pleased to advise Global Lithium on the acquisition of the Manna Lithium Project and the associated capital raising. The consolidation of ownership of the project will simplify the development of what is widely considered to be one of the leading emerging lithium projects in Australia.”
Global Lithium Chair Warrick Hazeldine said: “The acquisition of the underlying tenements provides Global Lithium with a clearer development pathway as we look to conclude these development focused studies in late 2023.”
“The Placement announced, along with the accompanying SPP, allows Global Lithium to complete the Manna Transaction whilst continuing to undertake value accretive exploration and study activities. We believe these additional funds will drive long term shareholder value.”
The Manna Lithium Project acquisition is scheduled to complete on or before 15 November 2022.