Future Battery Minerals (ASX:FBM) has received firm commitments from private investors to raise $7.6 million under a ‘heavily oversubscribed’ share placement.
The $52.36 million market capitalisation company says the placement will be completed over 2 tranches at an issue price of $0.10 per share.
Among the institutional, sophisticated, and professional investors taking part in the share placement is Gina Rinehart’s Hancock Prospecting, which has agreed to join Future Battery’s register as a cornerstone investor, committing to invest $2.65 million across the 2 tranches.
Future Battery Minerals shares have spiked 21.7% to $0.14 as of 10:15am AEST this morning (15 September).
Under tranche one of the placement, 51,950,424 shares will be issued to raise just under $5.2 million. Meanwhile, the second tranche of the placement will issue 23,850,000 shares to raise around $2.385 million.
Subject to shareholder approval, Future Battery Minerals directors will participate for an amount of $225,000 in tranche 2.
Funds raised from the placement will be used to accelerate exploration activities at the company’s Kangaroo Hills and Nevada Lithium projects.
At Kangaroo Hills, the funds will be put towards completing a phase three drilling program, ongoing diamond drill testing, and metallurgical and mineralogical assessments on core samples.
The company adds that the funds will also go towards ongoing target generative surveys and completing baseline environmental surveys at Kangaroo Hills.
At the Nevada project, the funds will be used towards starting a phase three reverse circulation (RC) and diamond drilling program later this month, initial metallurgical testwork, and delivering a maiden Mineral Resource Estimate (MRE) for the Lone Mountain prospect next year.
The funds will also be used for general working capital purposes.
Commenting on the placement, Future Battery Minerals Executive Chairman Mike Edwards says: “We are extremely pleased with the strong support received from both new and existing professional sophisticated and institutional investors, and we welcome Hancock Prospecting Pty Ltd to our register.
“The strongly oversubscribed placement not only confirms the quality of our projects but is also validation to the experience and track record of our dedicated teams in Western Australia and Nevada”
The strongly oversubscribed placement not only confirms the quality of our projects but is also validation to the experience and track record of our dedicated teams in Western Australia and Nevada.
We now look forward to continuing our exciting journey in the knowledge we are fully funded to accelerate exploration and development at both the Kangaroo Hills and Nevada Lithium projects.”
Future Battery Minerals is a battery minerals-focused exploration company. The company is focused on making discoveries around Australia and in Nevada, US.
Write to Aaliyah Rogan at Mining.com.au
Images: Future Battery Minerals
