Iris Metals (ASX:IR1) has raised $8 million to accelerate its lithium mining projects in the United States, as they stride to become a leading supplier of battery-grade lithium to North America. Additionally, Iris has entered an exclusivity agreement with Stardust Power Inc., aiming to create a partnership to advance sustainable lithium production.
Supporting U.S. lithium expansion
The capital raise will be conducted in two tranches. In tranche one Iris Metals will issue 30.5 million shares, raising approximately $7.625M.
Tranche two with include 1.5 million shares allocated to participating directors, raising a further $0.375M, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).
Additionally, Stardust Power has the right to acquire an additional 10 million shares at $0.25 per share, potentially raising another $2.5M, contingent on shareholder approval and the exclusivity period.
The funds raised will help Iris Metals push forward with exploration and development at its South Dakota lithium project, which is positioned to serve the North American battery supply chain. CPS Capital has been appointed as the lead manager for the placement.
Exclusive partnership with Stardust Power
Iris has also entered into an exclusivity agreement with Stardust Power. This agreement will allow both companies to explore joint development opportunities, aligning their resources and expertise to support sustainable lithium production for the North American battery materials market.
Iris Metals Chairman Peter Marks thanked investors for their continued support and spoke positively about the new partnership. “We are very pleased with the support shown for the capital raise and I thank our existing and new shareholders for their support. This new funding positions us to continue with our exploration, development and related activities at our properties in South Dakota.
“We are delighted to have progressed our relationship with Stardust Power to a period of exclusive discussions, under which we will explore ways of working together. Stardust Power is an ideal partner for IRIS Metals. We believe there is a highly complementary fit in our vision, cultures and operational expertise with both committed to producing battery-grade lithium in a sustainable manner.
“As previously discussed, we anticipate announcing a maiden mineral resource estimate at Beecher early in 2025 , followed by a resource at Tin Mountain.”
