Elmore sets sail with $3 million SPP to develop Peko Iron Ore Project in Northern Territory

Bulk commodity-focused Elmore (ASX:ELE) is raising up to $3 million through a share purchase plan (SPP) to help fund development at its Peko Iron Ore Project in the Northern Territory.

Under the SPP, eligible shareholders will be able to subscribe for up to $30,000 worth of shares at $0.0075 per share. For every 10 shares subscribed for, shareholders will receive an unlisted option exercisable at $0.015 within 18 months of being issued.

The $11.19 million market capitalisation company says these options are subject to shareholder approval. Along with progressing development at Peko, funds raised under the SPP will also be used for working capital purposes.

Along with progressing development at Peko, funds raised under the SPP will also be used for working capital purposes

On 22 June 2023, Elmore reported it had agreed to terms for about $45 million in new funding, including about $32.5 million under a non-binding term sheet for a pre-payment and life-of-mine (LOM) offtake deal, along with 12.5 million in binding commitments from private investors.

Of this $12.5 million, $6.2 million was advanced to investors upfront through loans that will convert into shares at $0.0075 each, while $1.5 million was raised through a placement. The remaining $4.8 million was settled by converting existing debts into equity at the offer price.

Elmore reports the SPP will open on 15 August 2023 and close on 4 September 2023. Shares subscribed for under the SPP will be issued on 8 September 2023 and will begin trading on the Australian Securities Exchange (ASX) on 11 September 2023.

Elmore is a Perth-based contract mineral processor and developer that holds the Peko Iron Ore Project near Tennant Creek in the Northern Territory. The company acquired Peko after 12 months of work to design, build, and commission the project’s mining and processing operations as a contractor.

While Elmore is initially focused on producing an iron magnetite product at Peko, it plans to utilise wholly owned plant and equipment to produce copper, cobalt, and gold from a tailings deposit within the project.

Write to Harry Mulholland at Mining.com.au

Images: Elmore Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.