Altura Mining says key shareholder Ningbo Shanshan would increase its stake and invest $22.4 million in the ASX-listed company.
The lithium miner said it will issue 200 million fully paid ordinary shares to a unit of Shanshan, which would result in the Shanghai-listed company becoming its single largest shareholder with a 19.4 per cent 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 per cent stake in Altura from the company’s former biggest investor and one-time suitor, China’s Shaanxi J&R Optimum Energy.
Altura’s shares traded as much as 9.1 per cent higher on Tuesday after the announcement, against a 0.3 per cent rise in the broader index.