Patagonia Lithium raises $11.4M for Formentera Project
Patagonia Lithium (ASX:PL3) has secured commitments to raise a total of $11.4 million to accelerate development at its flagship Formentera Lithium Project.
The capital raising initiatives kick off with an initial private placement of 34,000,000 fully paid ordinary shares to institutional, sophisticated, and existing investors at an issue price of $0.10 per share, raising $3.4 million before expenses.
The company has agreed to bring in an additional $8 million from investors under identical terms, resulting in the issuance of 80,000,000 more shares.
Participants across both investment tranches will receive one free attaching quoted option for every two shares subscribed for, exercisable at $0.16 and expiring on March 31, 2028.
The $0.10 placement price represents a 9.1% discount to Patagonia's last closing price of $0.11 on June 5, 2026, and a 12% discount to the 5-day volume-weighted average price.
Proceeds from the robust capital injection are principally earmarked to fund critical exploration and technical milestones.
These include drilling well 8 on the Cilon Concession, upgrading the current mineral resource estimate, preparing a comprehensive scoping study, and planning a 1,000-tonne lithium carbonate demonstration plant alongside essential working capital.
Cygnet Capital acted as lead manager and bookrunner, earning a $15,000 management fee and a 6% fee on the initial placement. Allotment of the new shares is expected to occur by June 19.
