Kennedy Ventures seeks $2.6m for lithium project

Kennedy Ventures seeks $2.6m for lithium project

UK-based miner Kennedy Ventures (LSE:KENV) is raising US$2.6 million to help fund its potential lithium project in Africa.

The firm will issue 66.7 million shares at 3p each, nearly 40% below its closing price on Tuesday.

The cash will be used by its 75% owned subsidiary, Aftan, to upgrade and expand the existing Tantalite mine and open another mineral-deposit which could generate lithium carbonate in the second quarter of 2017.

Kennedy would then become the first and only London-listed firm with actual production of “white gold”. The company plans to eventually produce the more superior white lithium concentrate.

The demand for lithium is anticipated to soar due to its usage in electric car batteries. Kennedy’s shares closed down 34.21% to 3.12p, but chairman Giles Clark said there wouldn’t be another fundraising round anytime soon.