Group 6 Metals (ASX:G6M) has announced a 2-week extension to its $5 million share purchase plan (SPP) to support the Dolphin Tungsten Mine in Tasmania.
The company reports the SPP closing date has been extended to give eligible shareholders the opportunity to consider the information contained in a supplementary prospectus released this week. As a result, the SPP will now close on 6 July 2023.
The company says the supplementary prospectus has been prepared at the request of the Australian Securities and Investments Commission (ASIC) after a review of Group 6 Metals’ updated project economics announcement that was lodged with the Australian Securities Exchange (ASX) on 31 October 2022.
ASIC requested the company provide further evidence on the difference between the 2022 project economics update and the information contained in the investor presentation released on 9 May 2023.
Under the SPP, eligible shareholders can apply for up to $50,000 of Group 6 shares at $0.14 per share. Additionally, for every 3 new shares issued under the SPP, eligible shareholders will also receive 2 free new options that will be exercisable at $0.21 per option on or before 30 June 2025.
Group 6 Metals reports the SPP follows a placement that received binding commitments to raise $27 million from new and existing sophisticated, professional, and institutional investors. Funds raised from the placement and SPP will be used to support operating activities to progress towards a positive cash flow at Dolphin.
On May 11, the company reported its top 3 shareholders would collectively sub-underwrite $3 million of the funds to be raised under the SPP.
Under the revised timeline for the SPP, new shares will be issued on 11 July 2023 and will begin trading on the ASX on 12 July 2023
Under the revised timeline for the SPP, new shares will be issued on 11 July 2023 and will begin trading on the ASX on 12 July 2023.
News of the SPP extension follows Group 6 Metals achieving first production of tungsten concentrate at Dolphin on 1 June 2023. The company considers this to be a ‘significant’ milestone, noting it puts Group 6 Metals in a position to capitalise on the increasing demand for tungsten and become a ‘leading’ producer of tungsten concentrate.
Group 6 Metals has now turned its focus to completing the remaining commissioning activities, along with performance testing, ramping up throughput, and tuning performance to maximise the concentrate grade and recovery.
Group 6 Metals is an Australian resources explorer and developer focused on redeveloping its wholly owned Dolphin Tungsten Mine on King Island in Tasmania. Initially, the company is focusing on producing a ‘high-grade’ tungsten concentrate at the project, although it plans to value-add the product for supply into the upstream tungsten industry.
Write to Harry Mulholland at Mining.com.au
Images: Group 6 Metals Ltd
