(Alliance News) - Neometals Ltd on Thursday said that it has closed a share placement, which will be used to fund activities at its Primobius recycling development, alongside other projects.

According to the London-based sustainable battery materials producer, the placement of 47.4 million new shares raised AUD9.0 million, or GBP4.7 million.

"We are pleased to close the placement oversubscribed and welcome the support of new domestic institutions and sophisticated investors alike...This raising ensures that our flagship business is funded to deliver its current and anticipated future purchase orders, whilst continuing the commercialisation of our other projects through partnerships and technology licensing," said Managing Director Chris Reed.

Additionally, Neometals said that it was undertaking a one for eight pro rata non-underwritten, non-renounceable entitlement offer to eligible shareholders in Australia and New Zealand to raise up to AUD13.1 million.

The terms and conditions of the entitlement offer will be set out in an offer booklet, expected next Wednesday.

Proceeds from the placement and entitlement offer, together with existing cash on hand, will be primarily used to fund activities at the Primobius lithium-boron recycling development; lithium chemical research development activities; vanadium and titanium business units; and working capital, corporate and offer costs.

Neometals shares were trading 9.0% lower at 10.92 pence each in London on Thursday afternoon, with a market cap of AUD113.4 million. In Sydney, Neometals closed down 18% to AUD0.21 each.

By Holly Beveridge, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.