Alliance Mineral Assets

Canaccord Genuity acts as Lead Manager and Bookrunner to a AUD$32.5 million strategic placement for Alliance Mineral Assets

Canaccord Genuity is pleased to announce a strategic placement to raise A$32.5 million on behalf of Alliance Mineral Assets Limited (“Alliance” or the “Company”) (ASX.A40, SGX.40F). Canaccord Genuity acted as Lead Manager and Bookrunner for the strategic placement, which was made to existing shareholders of Alliance; Galaxy Resources Limited (“Galaxy”) and Jiangxi Special Electric Motor Co., Ltd (“Jiangte”).

The component of the strategic placement made to Jiangte is subject to shareholder approval.

The capital raising introduces Galaxy as a strategic investor in Alliance as the largest individual shareholder, and further strengthens the relationship with strategic partner Jiangte, with which Alliance recently announced an MoU to develop the terms of a 50:50 joint venture to produce battery grade lithium hydroxide, and participate in the downstream lithium products market.

The proceeds of the strategic placement will be used to fund capital expenditure for continued upgrades to the processing facilities at the Bald Hill Lithium and Tantalum Mine in Western Australia (“Bald Hill Mine”), future exploration and other initiatives at the Bald Hill Mine, and for general working capital requirements.

Alliance’s principal asset is the Bald Hill Mine, which commenced production of lithium (spodumene) concentrate in March 2018. The Bald Hill Mine now produces high quality spodumene concentrates on a commercial scale, and production volumes are expected to increase throughout 2019.

Jiangte is listed on the Shenzhen Stock Exchange (SZE.002176), and is engaged in the R&D, production and sales of specialised electric motors and the production of lithium battery cathode material, electric automobile drive motor and control systems, and electric vehicles.

Galaxy is an ASX listed (ASX.GXY) global lithium company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina.

The Canaccord Genuity (Australia) deal team consisted of Marcus Freeman, Daniel Baohm, and Nathan Leong.