Technology Metals (TMT) is tapping investors for $10 million to fund exploration work at some of its core mining projects in Western Australia
The junior explorer announced the capital raise today, with commitments for an $8 million placement already received from sophisticated and institutional investors
The remaining $2 million will be raised through a share purchase plan, which opens on Friday, November 27, and closes on Friday, December 11
All new shares issued under the capital raise are priced at 35 cents — a neat 17.7 per cent discount to TNT’s last closing price
The new funding will go towards drilling work and pilot-scale test work at TMT’s emerging Yarrabubba iron-vanadium project in WA
Some of the funds will also go toward environmental approvals for the company’s flagship Gabanthina vanadium project, also in WA
Shares in Technology Metals retreated over 14 per cent today, closing near the cap raise price at 36 cents each
Technology Metals (TMT) is tapping investors for $10 million to fund exploration work at some of its core mining projects in Western Australia.
The junior miner broke out of a trading halt today on news that it has received commitments from sophisticated and institutional investors for an $8 million share placement.
New shares issued under the placement are priced at 35 cents each, which is a neat 17.7 per cent discount to the company’s last closing price of 43 cents.
Technology Metals said Chairman Xu Jinfu, who is a major shareholder of China-based Guangzhou Tinci Materials Technology, invested more money into TMT through the share placement.
On top of the placement, TMT has launched a share purchase plan to raise the extra $2 million. Under the plan, mum and dad investors will have a chance to subscribe for up to $30,000 worth of new TMT shares at the same price as the placement.
The purchase plan will open on Friday, November 27, and close on Friday, December 11.
Why the raise?
TMT said the cash injection will be mainly used to fund work at the its “rapidly emerging” Yarrabubba iron-vanadium project in Western Australia, as well as some environmental approval work at its flagship Gabanthina vanadium project, also in WA.
Specifically, the money will go towards diamond drilling, resource infill and extension reverse circulation (RC) drilling, and pilot-scale test work at Yarrabubba, among more.
The diamond drilling has already started, and TMT said it plans to finish study activities at the project by the end of the September quarter in 2021.
Technology Metals Managing Director Ian Prentice said the company is pleased to have received such strong support for the first part of the cap raise.
“The strength of this capital raising is a very strong endorsement of the company’s strategy in regard to the progression of Yarrabubba, and the management team is very excited about executing the planned workstream to deliver on the potential of this project,” Ian said.
Nevertheless, as is often the case with a nicely-discounted capital raise, TMT shares retreated towards the offer price after coming out of their trading halt today. The company closed 14.12 per cent lower with shares at 36 cents each.
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