Elevra Lithium (ASX:ELV) has completed a fully underwritten AU$275 million institutional placement, issuing around 22.5 million new fully paid ordinary shares at AU$12.20 each, representing an 8.7% discount to the five-day volume weighted average price (VWAP), according to a Wednesday filing with the Australian bourse.

The placement attracted strong demand from both existing shareholders and new domestic and international institutional investors, with settlement expected on Friday and trading scheduled to commence on May 18, per the filing.

The company also intends to launch a share purchase plan for eligible shareholders to raise up to AU$20 million, with shares priced at the lower of the five-day VWAP up to the closing date or AU$12.20 per share, the filing said.

The funds will be used to fully finance the NAL Brownfield expansion project, support key technical and pre-development activities at Moblan through to final investment decision, and maintain prudent liquidity and strategic optionality through market cycles, the filing added.

The company's shares fell 9% in recent Wednesday trade.