Group 6 Metals

Group 6 Metals raises $4.5 million in bolstered equity raise following strong demand

Group 6 Metals (ASX:G6M) has raised $4.5 million in a bolstered equity raise following strong demand from eligible shareholders as the company funds development of the Dolphin Tungsten Mine on King Island, Tasmania.

The Share Purchase Plan (SPP) was launched in November 2022 and has offered eligible shareholders the opportunity to apply for up to $30,000 of additional shares without incurring brokerage or transaction costs.

The offer was initially capped at $3 million however, due to ‘very strong demand’, the maximum amount to be raised was increased to $4.5 million. The offer remained well supported and the company accepted valid applications from shareholders totaling $4.47 million.

The offer was initially capped at $3 million however, due to ‘very strong demand’, the maximum amount to be raised was increased to $4.5 million

This will result in the issue of more than 26.315 million shares at an offer price of $0.17 per share, a 10.5% discount to the last traded price prior to the announcement of the SPP of $0.19 per share and an 11.4% discount to the 30-day VWAP of $0.1918 per share.

Each investor in the SPP will also be allocated an attaching option on a 1-for-2 basis, at a strike price of $0.28 per share with a 2-year term. This price represents a 65% premium to the SPP price of $0.17 per share.

Tungsten

Group 6 Metals reports that accordingly, just about 13.16 million options will be issued to investors in the SPP.

Shareholder approval for the issue of options was granted at the EGM in January 2023.

Shares and options the subject of valid applications will be allotted on 22 February 2023.

Proceeds of the SPP, together with the recently completed $20m placement, will primarily fund ongoing construction and operating activities at the Dolphin Tungsten Mine.

Group 6 Metals is an Australian resources exploration and development company focused on the redevelopment of its 100% owned Dolphin Mine. Its focus is on producing a ‘high-grade’ tungsten concentrate, however, the company plans to value-add the product for supply into the upstream tungsten industry.

Write to Adam Orlando at Mining.com.au

Images: Group 6 Metals Ltd & iStock
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.