Astute Metals (ASX:ASE) has closed its pro-rata non-renounceable entitlement offer, which raised $2.96 million, to advance several exploration programs across its portfolio of assets in Australia and the US.
Under the offer, the company issued one share for every four existing shares held at an issue price of $0.028. An additional 10.5 million new shares were applied for by existing shareholders.
Astute Metals, which has a market capitalisation of $15.26 million, plans to use the funds towards drilling at the Leichhardt East copper-gold target at the Georgina Basin Project in the Northern Territory, as well as further advance the Red Mountain Lithium Project.
Drilling at Leichhardt East is expected to begin later this year.
The company will also use the funds to progress metallurgical testwork at the Governor Broome Mineral Sands Project in Western Australia, and general working capital.
Chairman Tony Leibowitz says he believes the support provided by shareholders is an endorsement of the quality of its assets and its long-term strategy.
“I am very pleased with the strong support received for this entitlement issue, both from existing shareholders and new investors,” he says.
“I am also grateful to our long-term major shareholder, Holdmark Property Group, for its ongoing support.
“The company is now strongly positioned to embark on the next phase of its growth and development, and I am excited about what the future holds.”
Astute Metals is a critical minerals-focused explorer focused on the discovery and development of its projects located in tier one jurisdictions globally.
The company’s assets include the Governor Broome, Red Mountain, Georgina Basin, Kimberley Diamonds, and Needles Gold projects, all of which lie in the US and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
