(Reuters) - Altura Mining Ltd (AJM.AX) said on Tuesday key shareholder Ningbo Shanshan Co Ltd would increase its stake and invest A$22.4 million ($15.8 million) in the company.
The lithium miner said it will issue 200 million fully paid ordinary shares to a unit of Shanshan (600884.SS), which would result in the Shanghai-listed company becoming its single largest shareholder with a 19.4% stake.
The issue price of 11.2 cents per share is marginally higher than Altura’s last closing price of 11 cents per share on July 19.
Shanshan is a China-based supplier of lithium-ion battery materials.
Last month, it acquired an 11.8% stake in Altura from the company’s former biggest investor and one-time suitor, China’s Shaanxi J&R Optimum Energy 300116.SZ.
Altura’s shares traded as much as 9.1% higher on Tuesday after the announcement, against a 0.3% rise in the broader index
Reporting by Rashmi Ashok in Bengaluru; editing by Richard Pullin