Astute Metals (ASX:ASE) is launching an entitlement offer to raise $2.968 million to fund several exploration activities across its copper and lithium projects in Australia and the US.
Funds will be used to start drilling at the high-impact Leichhardt East copper-gold target within the Georgina Basin Iron Oxide Copper Gold Project in the Northern Territory.
The funds will also further advance the Red Mountain Lithium Project in the US, alongside metallurgical testwork at the Governor Broome Project in Western Australia.
Chairman Tony Leibowitz says the offer provides shareholders the opportunity to extend their participation in the company, as well as underpinning the next stage of development for its assets.
“As the company is proceeding with the next stage of exploration work at the Red Mountain Lithium discovery and is about to drill a potentially company-changing IOCG target in the Georgina Basin, this entitlement offer provides a great opportunity for shareholders to take advantage of these critical events,” Leibowitz says.
“Following my recent substantial acquisition from Greenvale Energy, I am putting my money where my mouth is by sub-underwriting under this offer. This is a testament to my faith in our team, our assets, and my excitement about the company’s prospects moving forward.”
Astute Metals, which has a market capitalisation of $16.53 million, says the underwritten, non-renounceable offer is on the basis of one new share for every four shares held at $0.028 per share.
The issue price represents a 26.3% discount to the last closing price on 26 July, as well as a 42.5% discount to the seven day volume weighted average price.
CPS Capital will act as the underwriter for the offer.
Astute Metals says the offer will open on 7 August and close on 16 August 2024.
Astute Metals is a mineral explorer focused on the discovery and development of critical minerals projects that lie in tier one jurisdictions globally.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
