Tungsten producer Group 6 Metals (ASX:G6M) has received applications for about $2.9 million from shareholders in its ongoing share purchase plan (SPP) to progress the Dolphin Tungsten Mine in Tasmania.
Under the SPP, the company aims to raise $5 million, with eligible shareholders able to apply for up to $50,000 worth of additional shares without incurring brokerage or transaction costs.
These shares will be issued at $0.14 each, which is the same price as the recently completed placement that received binding commitments to raise $27 million. All participants in the SPP will also receive 2 free options for every 3 shares subscribed for, exercisable at $0.21 each on or before 30 June 2025.
The funds raised under the placement and SPP will be used to strengthen Group 6 Metals’ balance sheet, progress the commissioning and ramp-up of the mining and processing plant operations, creditor payments, and accelerate feasibility studies for the Bold Head Mine development.
This funding will also be used to progress downstream processing, integrate renewable energy into the power supply for Dolphin, and Gworking capital position in the initial ramp-up phase ahead of steady-state production expected in Q3 2023.
Canaccord Genuity and Ord Minnett acted as joint lead managers to the placement, and partial underwriters of the SPP.
The SPP will close on 6 July 2023, with the results set to be announced on 11 July 2023. New shares issued under the SPP will begin trading on the Australian Securities Exchange (ASX) on 12 July 2023.
Group 6 Metals expects to mine a ‘high-grade’ portion of the open-cut mine in about 18 months
Mining.com.au reported on 28 June 2023 that Group 6 Metals expects to mine a ‘high-grade’ portion of the open-cut mine in about 18 months, which will considerably increase the production output of tungsten trioxide (WO3). This will also provide additional balance sheet flexibility and the ability to pay down existing debt, fund development at the satellite deposit Bold Head, and potentially pursue acquisition opportunities.
Group 6 Metals is an ASX-listed explorer focused on redeveloping the Dolphin Tungsten Mine on King Island in Tasmania. The project will initially produce a ‘high-grade’ tungsten concentrate, 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
