LONDON, UK: Zinnwald Lithium plc, the German focused lithium development company, will sell new shares at a price of 10.41 pence per share to raise a minimum of £14 million.

The net proceeds from the shares sale will be used to advance the company’s wholly owned Zinnwald Lithium Project in Germany towards a value optimised bankable feasibility study (BFS) for lithium hydroxide (LiOH) and towards the continued exploration of the potential to expand the size and scope of the project.

The shares sale price represents a premium of 10% to the 20-day Volume Weighted Average Price (VWAP) of the Company’s shares, as of the close of market on 20 March 2023.

The fundraising is led by AMG Advanced Metallurgical Group N.V (AMG), which is subscribing for a 25% shareholding in the company.  

Existing substantial shareholders, Henry Maxey and Mark Tindall are also subscribing for new ordinary shares at the placing price to maintain their pre-existing shareholdings.

The new ordinary shares will be issued utilising the company’s existing share authorities to issue new ordinary shares on a non-preemptive basis, as approved by the Company’s shareholders at the June 2022 Annual General Meeting.