Pilbara Minerals Ltd share price falls following its $80 million placement

With another small drop today, the Pilbara Minerals Ltd (ASX: PLS) share price has extended its year-to-date decline to 26%.

At present the lithium miner’s shares are down over 1% to 37 cents.

This morning Pilbara Minerals announced that it had successfully raised $80 million via an oversubscribed placement at 35 cents per share.

These funds will be used to develop the miner’s 100%-owned Pilgangoora Lithium-Tantalum Project in Western Australia.

The world class Pilgangoora Lithium-Tantalum project is among the largest Spodumene (Lithium Aluminium Silicate) projects in the world.

According to the release, Pilbara’s major shareholder Mineral Resources Limited (ASX: MIN) participated in the placement, maintaining its percentage shareholding in Pilbara. At the last count, Mineral Resources held an 8.3% stake in Pilbara Minerals.

With development now on the horizon, management will no doubt be hopeful that lithium prices remain at their sky-high levels long enough for the company to profit from them.

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