Piedmont Lithium (ASX:PLL) successfully completes US public offering

Piedmont Lithium Ltd (ASX: PLL) is well funded to emerge as a next lithium producer after completing its US public listing

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Piedmont Lithium Ltd (ASX: PLL) has announced the successful completion of its underwritten public offering. This consists of 1.75 million of its American Depository Shares (ADS) with gross proceeds of US$122.5 million or A$159.1 million. Each ADS represents 100 of the company’s ordinary shares listed on the ASX. 

Fresh funds to drive Piedmont Lithium operations 

Piedmont is working through a number of prerequisites to emerge as the only US integrated hydroxide from the spodumene project. 

The company’s 25,000-meter drill program is underway and expected to provide a mineral resource update in April 2021. Piedmont is targeting the completion of its infill drilling operations by August 2021. 

Coinciding with drilling activities, a definitive feasibility study (DFS) is scheduled for completion in the September quarter. The completion of an integrated DFS will be the key to advancing the project financing and construction phase.

If all things go to plan, the company expects construction operations to be completed in 2022. Additionally, Piedmont expects the lithium chemical plan to be completed in 2023.

A step closer to make Nasdaq primary listing 

The completion of Piedmont’s public offering takes the company one step closer to redomicile its shares. This will involve a transfer from Australia to the US. 

Additionally, this move will be in-line with the company’s strategy to grow its US investor pool. It will also leverage cheaper funding from the world’s largest economy.

Similarly, Mesoblast Limited (ASX: MSB) has taken a similar approach in listing on the Nasdaq. Ultimately, this will help the company overcome the significant capital burden of clinical trials to advance its portfolio of medicines.

Piedmont will also likely require additional financing after the completion of its drilling and DFS to fund the construction of its lithium plant. A primary listing in the US would therefore help the company diversify and de-risk both current and future funding requirements.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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