PROJECT FINANCE

Battery metal focused Greenwing flies out of debt

Placement and note conversion come as maiden Argentinian lithium drilling underway

This article is 1 year old. Images might not display.

The junior explorer has announced an "overhaul" of its balance sheet, including a A$2.7 million director-backed placement at 22.5c, a $1 million loan facility from chair Rick Anthon, and the conversion of almost 70% of its $4.2 million worth of convertible notes into equity.
 
The placement and conversion are at a 1% premium to recent trading levels, but are far below the 55c price of its strategic $12 million placement to NYSE-listed electric vehicle firm NIO in January.
 
The terms mean the company will be free of any secured debt and have $9.5 million cash, plus the short-term Anthon loan that will be undrawn at this stage. 
 
Greenwing is drilling its first three holes at San Jorge lithium brine project in Argentina and hopes to deliver a maiden resource before the end of the year. 
 
NIO then has a 12-month option over a portion of San Jorge that could deliver Greenwing US$40-80 million.
 
It continues to work on developing its Graphmada graphite mine and the Millie's Reward hard rock lithium project in Madagascar.
 
Madagascar's mining code was recently updated.
 
Greenwing increased resources at Graphmada to 61.9 million tonnes grading 4.5% fixed carbon for some 2.7Mt of contained graphite just over a year ago, and has been talking about a much larger stage two development if operations resume.
 
Graphmada previously operated for Greenwing (then known as Bass Metals) in 2018-20, producing 500t per month.
 
Millie's Reward is a virgin discovery in the same region. While essentially undrilled, surface sampling recovered up to 7.1% lithium and trenching returned 31m at 3.72%. Mapping has outlined a 10km-long pegmatite swarm.
 
Greenwing shares were up 4.5% today at 23c, valuing it at $34.5 million.
 
The stock has traded between 17-46c over the past year.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.