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Alliance Mineral completes book building for share placement; issue, allotment and trading in May

CATALIST-listed lithium miner Alliance Mineral Assets has completed the book building for an underwritten share placement, it said on Monday morning.

About 76.52 million such shares, or a 13.8 per cent stake in the company, will go to three sophisticated institutional investors in Australia and Hong Kong at an issue price of S$0.33 apiece, for gross proceeds of A$25 million (S$25.2 million).

The issue and allotment is expected to take place on or about May 2, the company said. Trading in these shares will start on May 4 at 9am.

A separate, non-underwritten placement to substantial shareholder Burwill Holdings is expected to reap gross proceeds of up to A$7.8 million.

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Alliance had previously said that the placements were for capital expenditure and additional working capital, for its lithium and tantalum project at the Bald Hill mine in Western Australia. The move would also provide funding for future exploration and other initiatives at Bald Hill.

The company also plans to merge with its Bald Hill joint-venture partner, Australia-listed Tawana Resources, under a scheme of arrangement under the Australian Corporations Act.

The move would see Alliance acquire all of Tawana's issued shares at 1.1 Alliance shares for each Tawana share.

Tawana is planning share placements of its own, for gross proceeds of A$20 million on a fully underwritten basis. It reserves the right to place up to another A$5 million on a non-underwritten basis.

Alliance and Tawana said on March 14 that the Bald Hill project had started producing lithium.

That news came just a day after Alliance CEO Tjandra Adi Pramoko and his wife Simone Suen Sze Man, an executive director, were sacked over a purported lack of confidence in their abilities to continue with their duties.

The couple hold a 10.2 per cent stake in Alliance through their Living Waters Mining Australia investment vehicle. This will fall to 9.8 per cent after the placements and then to 5.1 per cent after the merger.