The company received commitments from institutional and sophisticated investors to raise $53 million at 35c per share.

Pilbara decided to lift the size of the original $50 million offer due to “exceptionally strong support” from new and existing investors.

“The institutional placement closed on Friday with bids into the book well above the expected target – a remarkable result considering the current volatile conditions in the resource sector,” Pilbara managing director Ken Brinsden said.

Mineral Resources participated in the placement to maintain its 8.16% stake, while Pilbara will receive another US$20 million (around A$27 million) from its offtake partner Jiangxi Ganfeng Lithium Co.

Hartleys and UBS were joint lead managers to the placement, with BurnVoir Corporate Finance acting as an advisor.

The successful raising comes a week after Pilbara raised $100 million in a bond issue. It will still look to raise another A$15 million in a share purchase plan in July.

The issues complete the funding for the $234 million Pilgangoora lithium-tantalum project development.

“The completion of the funding package clears the way for the Pilbara Minerals board to make a final investment decision – which is now expected to be imminent – and, with all major environmental and regulatory approvals in place, we can get on with the job of building an important new resources project in Western Australia,” Brinsden said.

Brinsden added that the significance of the funding should not be underestimated on a global scale.

“Pilgangoora will be a major new source of lithium supply to the global battery supply chain – a critical component in the electrification thematic which is rapidly gaining momentum as more and more investors understand the significance of transformational changes that are occurring in China and elsewhere,” he said.

“This is an exciting time for the lithium industry globally, and we are very pleased that Australia is going to play such an important role in the supply of high-value metal which could help facilitate one of the biggest transformations the global economy has seen in recent times.”

When combined with existing cash of $51 million, a previously announced $18 million investment from offtake partner General Lithium, the bond issue and raising will give Pilbara available cash of $296 million.

Early works have been underway at Pilgangoora since November and remaining capital costs are $207 million for first production in the first quarter of 2018.

Average annual production over Pilgangoora’s 36-year life is set to be 314,000 tonnes of 6% spodumene concentrate and 321,000 pounds of tantalite at cash operating costs of US$196 per tonne CFR in the first 15 years, and $207/t over the life of the mine.

Under the base case 2Mtpa production rate and assuming an average sales price of $537/t, Pilgangoora has a post-tax net present value of A$709 million, at a 10% discount rate, with a 2.7-year payback period and internal rate of return of 38.1%.

More recently, Galaxy Resources has settled 2017 contracts at a price of US$905/t of spodumene.

Pilbara shares resumed trading this morning and fell by 5% to A35.5c, just above the raising price.