Astute Metals (ASX:ASE) is conducting a placement to raise $1.92 million to deliver a maiden resource for the Red Mountain Lithium Project in the US.
Under the placement, 73.99 million shares will be issued at $0.024 per share which will raise $1.77 million. The capital raising is expected to be settled on 3 February 2025.
In addition, Chairman Tony Leibowitz will subscribe for $150,000 on the same terms as the first tranche of the placement. Liebowitz will receive one option for every two shares issued, exercisable at $0.05.
Concurrently, Astute intends to implement a loyalty option plan for all shareholders as of 13 February 2025. The loyalty option will be for an 18-month period, exercisable at $0.05 per option.
Astute notes that the loyalty options are expected to be listed on the Australian Securities Exchange on or around 21 February 2025.
The option plan is designed to reward existing shareholders and new shareholders for their investment in the company.
Astute says the funds will allow the company to further advance diamond drilling at the Red Mountain Project, where the explorer is working towards a maiden resource.
Leibowitz says the company is set for a big year in 2025 as it rapidly advances the lithium claystone discovery at Red Mountain.
“This is a substantial and highly strategic critical asset in a tier one location, with the potential to deliver enormous value,” Leibowitz says.
“Against the backdrop of an ascendant lithium market and a rapidly changing geopolitical landscape, we believe that Red Mountain is ideally positioned to advance towards a maiden mineral resource estimate this year.
“The funds raised through this pivotal capital raising will ensure the company is well-funded to execute the drilling and exploration programs we need to undertake to unlock the value of this exciting discovery.”
The Red Mountain Project is located adjacent to infrastructure in North America’s lithium hot-spot of Nevada.
Astute Metals is a diversified mineral explorer focused on the discovery and development of critical mineral deposits required for electrification and the global energy transition.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
