Australian tungsten explorer Group 6 Metals (ASX:G6M) has launched a partially underwritten share purchase plan (SPP) aiming to raise up to $5 million to support the Dolphin Tungsten Mine in Tasmania.
The company now reports 3 of the company’s top shareholders have collectively sub-underwritten $3 million of the funds to be raised under the SPP. Sub-underwriting by Group 6 Metals Director Chris Ellis will be subject to shareholder approval in an upcoming extraordinary general meeting (EGM).
Previously, the company reported that its top 4 shareholders had supported the SPP to raise the majority of the capital.
Under the SPP, Group 6 Metals shareholders with a registered address in Australia or New Zealand on the company’s register as of 5 May 2023 will have the opportunity to apply for up to $50,000 of additional shares at $0.14 per share.
Additionally, for every new share issued under the SPP, eligible shareholders will also receive 2 free options that will be exercisable at $0.21 per option at any time on or before 30 June 2025.
Group 6 reports the SPP follows a placement where the company received binding commitments from new and existing sophisticated, professional, and institutional investors to raise $27 million. Shares under the placement were issued at $0.14 per share.
The company says the funds raised in the placement and SPP will be primarily used to fund operating activities to progress operations towards positive cash flow at Dolphin.
The funds raised in the placement and SPP will be primarily used to fund operating activities to progress operations towards positive cash flow at Dolphin
Group 6 also reports it may accept applications that result in the SPP raising up to $5 million in its absolute discretion, and notes applications may be subject to scale-back.
The company says the SPP offer period is expected to open on 15 May 2023 and close on 22 June 2023. Canaccord Genuity and Ord Minnett acted as joint lead managers to the placement and were partial underwriters of the SPP.
Group 6 Metals is an Australian resources exploration and development company focused on redeveloping the Dolphin Tungsten Mine on King Island, Tasmania.
Dolphin contains a JORC-compliant mineral reserve of 4.43 million tonnes at a grade of 0.92% tungsten oxide, while mineral resources including mineral reserves total 9.6 million tonnes at a grade of 0.90% tungsten oxide.
Images: Group 6 Metals Ltd
