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Forrestania draws on battery power

30 September 2021 14:39
ASX: FRS

Newly-listed ASX company Forrestania Resources has oversubscribed a $5 million initial public offering for the world-class Forrestania project near the prestigious Wesfarmers/SQM Mt Holland Lithium mine and Western Areas Forrestania project, around 400 kilometres east of Perth in Western Australia.

The timely news comes as lithium carbonate skyrocketed to above 153,000 yuan per tonne in September, the highest since April 2018, and extending year-to-date gains to around 220 per cent, amid surging demand and supply concerns as most pandemic recovery plans are heavily contingent on the transformation of the transportation sector.

The company, formed around the consolidation and acquisition of highly prospective assets of Forrestania Lithium, Gold and Nickel project, Southern Cross Gold project, and the Leonora Gold project, will use the modest fundraising for exploration of ready-made lithium targets laying within five kilometres of the world-class Mt Holland Lithium Project, formerly the plus-million-ounce historic Bounty Gold Mine.

It said the relatively low-value capital raising would set a solid foundation for a generation of shareholder value with lithium testing work already well underway a historic lithium oxide targets showing grades as high as 4 per cent.

About the IPO

A total of 25m shares were issued for 20c per share under the offer, raising $5mm (before costs).

CPS Capital Group Pty Ltd acted as lead manager to the offer, with Steinepreis Paganin appointed solicitor.

The Company now has a total of 51m shares on issue and an enterprise value of approximately $5m.

The company’s Australian Stock Exchange-listed share price was 29c today (2:02 pm GMT+ 8 hours).

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