GreenTech Metals (ASX:GRE) has received firm commitments for its two-tranche placement, raising up to $7.5 million before costs from sophisticated and professional investors.
The placement has an issue price of $0.075 per share, representing the last trade price. This represents an 11.1% discount to the five-day volume-weighted average price of $0.084 and a 10.3% discount to the 10-day volume-weighted average price of $0.083.
The total bids for the placement exceeded the original target of $6 million, leading the board to increase the offer and accept bids up to $7.5 million.
Subject to shareholder approval, the placement will be completed across two tranches (around 50 million shares each) and include a $265,000 commitment from the board and management.
CEO James Rattenbury says that GreenTech is ‘very happy’ with the support received for the placement.
“To secure $7.5 million from such a high-calibre group of new and existing institutional investors is a strong validation of our West Pilbara portfolio and our strategic direction,” Rattenbury says.
“The technically focused review completed by incoming resource-focused institutional investors provides important third-party validation of the quality of GreenTech’s projects.
“This funding provides GreenTech with a robust balance sheet to aggressively advance our exploration and development programs at both the Munni Munni platinum group element-copper-nickel and Whundo copper-zinc-gold projects.”
With this funding in place, GreenTech Metals will be commencing its phase two exploration activities across Munni Munni and Whundo in the West Pilbara Region of Western Australia.
At Munni Munni, funding will be put towards updating the historic mineral resource estimate to JORC standards, while at Whundo, drilling for metallurgical samples will be undertaken as the company looks to include gold in the updated resource.
Funds will also be put towards general working capital and costs of the offer.
CPS Capital Group is acting as the lead manager and broker for the placement and is receiving a fee of 6% of funds raised.
GreenTech Metals is an exploration and development company focused on growing a critical minerals and precious metals hub in the West Pilbara region of Western Australia.
Write to Amy Rotman at Mining.com.au
Images: GreenTech Metals
