One of China’s early movers in the manufacture of lithium-ion batteries has become a cornerstone investor in Western Australia-based nickel explorer Cassini Resources, via a $4.2 million share placement.
Cassini announced to the ASX today that Guanzhou Tinci Materials Technology Co chairman Xu Jinfu had taken a cornerstone stake in the company via the placement, which was priced at 6.1 cents per share.
Shenzhen-listed Tinci is a leading manufacturer in lithium-ion battery materials and is considered to be one of the pioneers of electrolyte manufacturing for batteries in China.
Cassini said other strategic investors in the placement included high-net worth Asian investors with a track record of development, offtake and financing of battery minerals assets.
The company said the funds would be used as working capital through the feasibility study stages of its West Musgrave nickel and copper sulphide project, which it is developing in a joint venture with fellow ASX-listed miner OZ Minerals.
Ahanti Capital and Sternship Advisers acted as lead managers for the placement.
“We are delighted to announce the completion of the placement and would like to welcome our new shareholders to Cassini,” managing director Richard Bevan said.
“The partnership with OZ Minerals combined with the investment by Mr Xu and the others strategic investors reinforces the scale and interest in Cassini’s West Musgrave nickel, copper sulphide project.
“It also highlights the desire from various parties to position themselves to be involved in the future funding requirements for the project.”
Prior to the share placement, Cassini’s major shareholders were mining contractors MACA, which held a 10.8 per cent stake, and GR Engineering, which held a 5.4 per cent stake.
The company did not disclose its updated share registry following the placement.