The Lithium Energy Ltd (ASX: LEL) share price is charging higher on Thursday after returning from a trading halt.
In afternoon trade, the lithium explorerâs shares are up 14% to $1.37.
At one stage, the Lithium Energy share price was up as much as 19% to $1.43.
Why is the Lithium Energy share price charging higher?
Investors have been bidding the Lithium Energy share price higher today following the release of a positive announcement.
According to the release, the company has raised $15 million before costs through a heavily oversubscribed placement to new and existing institutional and sophisticated and professional investors.
These funds were raised at $1.00 per new share, which represents 16.7% discount to the Lithium Energy share price prior to its trading halt.
Why is Lithium Energy raising funds?
The proceeds from the capital raising will be used primarily to accelerate and potentially expand exploration activities at the Solaroz Lithium Brine Project in Argentina.
In addition, the proceeds will support the advancement of the Burke Graphite Project in Queensland and for general working capital purposes.
Management highlights that the highly prospective flagship Solaroz Lithium Brine Project is located in the heart of South Americaâs world-renowned Lithium Triangle. It counts Allkem Ltd (ASX: AKE) and Lithium Americas Corporation as neighbours.
Drilling activities have commenced and management is now using the funds raised to secure additional drilling rigs to accelerate the programme.
The post Here’s why Lithium Energy shares are shooting 14% higher today appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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