Alita Resources Ltd (ASX:A40) (SGX:40F) substantial shareholder Weier Antriebe und Energietechnik GmbH, a subsidiary of China-based Jiangxi Special Electric Motor Co, has increased its holding in the company to 9.06%.
The German-based investor participated in a conditional placement by purchasing an additional 50 million shares with total value of $10 million.
Jiangte’s generator and motor producing subsidiary Weir Antriebe now holds more than 133.78 million shares.
READ: Alliance Mineral Assets Ltd enters strategic placements with Galaxy and Jiangte to raise $32.5 million
In May Alita, then called Alliance Mineral Assets Ltd, executed separate subscription agreements with Weir Antriebe and Galaxy Resources Ltd (ASX:GXY) to raise a total of $32.5 million at 20 cents per share.
Galaxy contributed $22.5 million in an institutional placement to become Alita’s largest shareholder while the Jiangte subsidiary’s $10 million was provided through a conditional placement.
These placements will provide funding for continued upgrades to the company’s processing facilities and future exploration at its Ball Hill lithium and tantalum mine in WA.
At the time Alita’s managing director Mark Calderwood said the company was pleased with existing partner Jiangte’s support and welcomed Galaxy as a strategic investor in Alliance.
Calderwood said: “Our focus over the past 18 months has been on delivering the Bald Hill Mine to production and we have developed a reputation for production and supply of high-quality spodumene concentrates.
“Investment by Jiangte and Galaxy Resources, who are both experienced participants in the lithium sector, is a recognition of, and testament to, our achievements and position in the market.”
Stage II plant upgrade
A stage II plant upgrade at Bald Hill involves lowering the dense media separation bottom size from 1 millimetre to 0.5 and increasing hourly plant throughput capacity from 220 tonnes to 300 tonnes.
Detailed engineering as well as equipment tendering and ordering is ongoing, with commissioning of the fines circuit anticipated to begin during the fourth quarter of 2019.
Alita achieved another strong quarter of production from Bald Hill with 38,717 wet metric tonnes (wmt) of high-grade lithium concentrate produced in the three months to June 30 grading 6.2% lithium oxide.
This represents a slight increase in tonnage and about a 35% increase in contained lithia from the March 2019 quarter production of 38,291wmt at 6.1%.
Total half year production was 77,008wmt at 6.15% lithium, equating to 78,937wmt of 6% lithium equivalent, which was at the upper end of previous production guidance.