Australian Strategic Materials (ASX:ASM) is looking to raise more than $20 million as it works towards reaching a final investment decision (FID) for its Dubbo Project in New South Wales.
Already, firm commitments have been received from international and domestic institutions for a $15 million placement. More than 12.9 million shares will be issued at $1.16 each, representing a 19.4% discount to the company’s last closing price of $1.44 on 12 April.
Each share issued will also come with one free-attaching option, exercisable at $1.74 per share until 31 October, 2027.
Australian Strategic Materials intends to raise a further $5.2 million under a separate entitlement offer, with $1.4 million already committed by the company’s Chair and major shareholder Ian Gandel through his investment vehicle Abbotsleigh.
According to the terms of the offer, eligible shareholders may apply for one new share — also at $1.16 each — for every 40 shares already held. Like the placement, each new share will come with a free-attaching option, exercisable under the same terms.
“The funds raised under the offer will go towards demonstrating ASM has the required co-commitments to enable government funding that will be used to progress key critical path activities to take final investment decision for ASM’s Dubbo Project,” Managing Director and CEO Rowena Smith says.
“The market’s response has been very encouraging, and we are looking forward to capitalise on this momentum to accelerate progression towards FID,” she says.
The proceeds will also cover corporate costs, general working capital, and the costs of the offer.
Bell Potter Securities is acting as sole lead manager to the offer.
Australian Strategic Materials is an emerging vertically integrated producer of critical minerals for new growth industries, high technologies, and sustainable energy solutions.
Write to Adam Drought at Mining.com.au
Images: Australian Strategic Materials
