Heavy Minerals employs Foster Stockbroking to lead proposed capital raise 

Industrial mineral explorer Heavy Minerals (ASX:HVY) has entered into a mandate with private firm Foster Stockbroking under which Foster will act as lead arranger to a proposed capital raising. 

The company says under the terms of the mandate, Foster will procure investors to participate in a pre-payment of a royalty interest in the Port Gregory Project. 

The money raised from the pre-paid royalty will be used to fund the development of Heavy Minerals’ Prefeasibility Study (PFS) over the coming quarters, as well as for general working capital. 

Heavy Minerals notes it will likewise consider the issuance of a second tranche of the pre-paid royalty following the release of its PFS. This PFS is scheduled to be released in early 2024. 

Under the mandate, Foster will receive a fee of 5% of the funds raised under the prepaid royalty and will also be issued 1 million unquoted options with an exercise price of $0.25. These options expire 2 years from their date of issue and will be issued under Heavy’s available placement capacity. 

the quantum of funds to be raised under the prepaid royalty has not yet been determined

However, Heavy states at present, the quantum of funds to be raised under the prepaid royalty has not yet been determined, and the final quantum of the pre-paid royalty raising is expected to be announced over the coming weeks once firm commitments from investors have been received. 

This announcement comes following the delivery of an updated Mineral Resource Estimate (MRE) for the Port Gregory Project, as announced by Heavy Minerals last month (July 2023). 

The company reported that this most recent update represents about 5 years of the current global garnet demand and paves the way for Heavy to inform its upcoming PFS. 

Heavy Minerals is an ASX-listed mineral explorer focused on its Port Gregory and Red Hill Garnet projects in Western Australia. The company’s Port Gregory project is situated within the mineralogical terrain of the Hutt River Garnet area within the Shire of Northampton. 

As of 30 June 2023, Heavy Minerals had $320,000 cash at hand, according to its latest quarterly report.

Write to Adam Drought at Mining.com.au

Images: Heavy Minerals Ltd
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.