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Successful Completion of A$53 Million Placement

(June 14, 2018)
  • Significantly oversubscribed Institutional Placement has closed raising A$53 million to support the development of the Rhyolite Ridge Lithium-Boron Project

  • Placement was strongly supported by existing shareholders and new investors including high-quality domestic and offshore institutions
  • Citigroup is sole lead manager, bookrunner and underwriter to the Placement

NORTH SYDNEY, Australia, June 13, 2018 (GLOBE NEWSWIRE) --  Global Geoscience Limited (Global” or the Company) (ASX:GSC) is pleased to announce that the Company has completed the underwritten institutional placement (Placement) announced on 13 June 2018. The Placement was heavily oversubscribed, reflecting strong support for the Company from a combination of existing shareholders and new high-quality institutional investors, driven by ongoing interest in Global's 100% owned Rhyolite Ridge Lithium-Boron Project in Nevada, USA.

The equity raising will provide Global with the necessary funding to accelerate the development of Rhyolite Ridge by funding the:

  • Completion of feasibility studies;
  • Drilling to infill and extend the current resource; and
  • Ongoing working capital and potential long lead time items.

The Rhyolite Ridge Definitive Feasibility Study (DFS) and environmental approval process are anticipated to be complete by 2H19.1

The Placement of 130 million ordinary shares (New Shares) will be issued using Global's 25% placement capacity pursuant to ASX Listing Rule 7.1 and 7.1A, as approved by Global shareholders at the Company’s Annual General Meeting on 28 September 2017. New Shares will be issued at a fixed price of A$0.41 (Issue Price).

Global provides the following information required under ASX Listing Rule 3.10.5A:

a. The dilutive effect of the Placement on existing shareholders is as follows:

Number of Shares on issue prior to the Placement: 1,339,185,087

Placement issue under Listing Rule 7.1 (126,991,996 shares)9.48%
Placement issue under Listing Rule 7.1A (3,320,000 shares)0.25%
Total dilution as a result of the Placement9.73%

Number of Shares on issue following the Placement: 1,469,497,083

b. Global elected to make the Placement in preference to a pro-rata issue as it believed that the Placement offered superior certainty and timeliness with a lower transaction cost than a pro rata issue.  Global is grateful for the support of its long-term shareholders and where possible will continue to endeavour to afford those shareholders with opportunities to participate in capital raisings.

c. The Placement was fully underwritten by Citigroup Global Markets Australia Pty Limited.  The Company has agreed to pay fees to the underwriter equal to 4.75% of the gross proceeds of the Placement (inclusive of all third party selling fees, but exclusive of GST). 

d. In addition to the fees payable to the underwriter referred to above, Global estimates that other costs incurred in connection with the Placement will be less than $20,000. 

The company confirms that the Issue Price satisfies the pricing requirements in Listing Rule 7.1A.3.

Settlement of the Placement is schedule to occur on Wednesday, 20 June 2018. New Shares issued under the Placement will rank equality with existing Global Geoscience ordinary shares.

Citigroup Global Markets Australia Pty Limited is acting as sole lead manager, bookrunner and underwriter to the Placement.

For further information, please contact:

Bernard Rowe

Managing DirectorT: +61 419 447 280


E: browe@globalgeo.com.au
James D. Calaway
Chairman
T: +1 713 818 1457
E: jcalaway@calawayinterests.com
Roger Howe
Investor Relations
T: +61 405 41 9 139
E: rhowe@globalgeo.com.au

ABOUT RHYOLITE RIDGE LITHIUM-BORON PROJECT

Global Geoscience’s (ASX:GSC) is an Australian-based lithium-boron mine developer focused on its 100%-owned Rhyolite Ridge Lithium-Boron Project in Nevada, USA. Rhyolite Ridge is a large, shallow lithium-boron deposit located close to existing infrastructure. It is a unique sedimentary deposit that has many advantages over the brine and pegmatite deposits that currently provide the world’s lithium. The Rhyolite Ridge Pre-Feasibility Study is in progress.

Global’s Rhyolite Ridge is the only lithium deposit in the world that has been demonstrated to be amenable to simple acid leach processing, reinforcing it as an economically viable alternative to spodumene and brine deposits as a major, low-cost and long-term source of lithium.

Global Geoscience is aiming to capitalise on the growing global demand for lithium and boron. Lithium has a wide variety of applications, including pharmaceuticals, lubricants and its main growth market, batteries. Boron is used in glass and ceramics, semiconductors and agriculture. Global Geoscience aims to develop the Rhyolite Ridge Lithium-Boron Project into a strategic, long-life, low-cost supplier of lithium carbonate and boric acid. To learn more please visit: www.globalgeo.com.au.

1 Assumes an Environmental Assessment for permitting.


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