The Green Technology Metals Ltd (ASX: GT1) share price is in the green today amid a capital raise and details of a new investor.
Minutes after the market open this morning, the ASX lithium share surged to an all-time record high of $1.25. That's a 7.75% bump on yesterday's closing price of $1.16.
Let's take a look at what this ASX lithium explorer announced to the share market today.
Lithium Americas invests in Green Technology Metals
Green Technology Metals is conducting a share placement in two stages to raise about $55 million.
The company said it has received firm commitments for a two-tranche placement of 52.4 million new shares at $1.05 each. This is a 9.1% discount on the stock's last closing price before yesterday's trading halt.
Lithium Americas Corp (NYSE: LAC) is investing US$10 million in Green Technology Metals as part of this placement. Lithium Americas is developing lithium in Argentina and Nevada, US. The company has a market capitalisation of about US$3.4 billion.
Commenting on the news, Green Technology Metals CEO Luke Cox said:
We are delighted to have secured such a strong spread of new and existing investors to this transformational equity raising.
The endorsement of leading lithium company, Lithium Americas, also reinforces our positive view on the prospectivity of our assets.
Green Technology Metals will use the funds from this capital raise for exploring and developing lithium assets in Ontario, Canada. This includes completing a feasibility study for the Seymour Lithium Mine project.
Recapping the growth of this ASX lithium share
The Green Technology Metals share price has surged 81% in the year to date and 205% in the past year. In comparison, S&P/ASX All Ordinaries Index (ASX: XAO) has fallen 3.8% in the year to date and gained 4% over the past 12 months.
Green Technology Metals has a market capitalisation of about $232.78 million.
