Junior explorer and developer Group 6 Metals (ASX:G6M) has strengthened its balance sheet with a $3.7 million share purchase plan (SPP) to support its Dolphin Tungsten Mine on King Island in Tasmania.
The company, which has a $126.44 million market capitalisation, says the offer was ‘strongly’ supported and accepted valid applications from shareholders totalling $3.72 million.
This will result in the issue of 26.583 million shares at an offer price of $0.14 per share — the same issue price as its recently completed placement.
Group 6 Metals reports each investor in the SPP will also be allocated an attaching option on a 2-for-3 basis with a strike price of $0.21 per share and an expiration date of 30 June 2025.
Under the SPP, eligible company shareholders were offered the opportunity to apply for $50,000 of additional shares per shareholder without incurring brokerage or transaction costs. The offer was partially underwritten to raise a minimum amount of $3 million.
Funds raised under the SPP are expected to support the Dolphin Tungsten Mine
Funds raised under the SPP are expected to support the Dolphin Tungsten Mine ahead of the company’s first concentrate shipment scheduled for later this month (July 2023).
The remaining shares under the SPP are intended to be allocated to sophisticated and professional investors to raise the maximum amount of $5 million. This is expected to be completed as soon as practical but no later than 3 months after the company’s extraordinary general meeting held on 15 June 2023.
This announcement comes 7 days after Group 6 reported commercial production of tungsten concentrate at the Dolphin Tungsten Mine.
Group 6 Metals stated its process plant achieved a 70% runtime processing in excess of 10,000 tonnes of ‘lower’ to ‘medium’ grade ore at an average grade of 0.3% WO3, which produced 10 tonnes of saleable tungsten concentrate in June 2023.
Group 6 Metals is an ASX-listed explorer and developer whose name honours tungsten as its first commodity project under development, the Dolphin Tungsten Mine on King Island, Tasmania.
The company had $3.2 million cash at hand and $5.4 million in undrawn debt facilities on 31 March 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Group 6 Metals Ltd
