Iltani Resources (ASX:ILT) has secured $4.6 million through an equity placement to accelerate drilling at its Orient Silver-Zinc-Indium Project in Far North Queensland.
The company will issue approximately 11.7 million shares at $0.39 each, representing a 14.5% discount to the five-day volume-weighted average share price. Placement participants receive one option for every two shares issued, with options exercisable at $0.57 and expiring on 12 October 2029.
Queensland Investment Corporation’s (QIC) Queensland Critical Minerals Fund (QCMF) committed $1.5 million to the placement, making it Iltani’s largest shareholder with a 10.1% undiluted stake. The company’s board of directors will also subscribe for $150,000 worth of shares, subject to shareholder approval.
Managing Director Donald Garner says the company is ‘very pleased’ with the ‘strong’ support for the placement, particularly from the QCMF.
“The QIC’s Queensland Critical Minerals Fund acted as a cornerstone investor in the placement with a $1.5 million investment,” Garner says.
“The strong support from the QIC, plus both existing and new institutional, professional, and sophisticated investors is indicative of the quality of the Orient Silver-Zinc-Indium Project, and the potential for Iltani to deliver outstanding shareholder value as we advance Orient forwards.”
The funds are earmarked for the Orient resource extension drilling program, which comprises 145 drill holes targeting the Orient West NW Ridgeline and Link Zone areas.
Drilling builds on recent ‘high-grade’ results as the company seeks to materially grow the Orient mineral resource.
Garner says the planned drilling will commence shortly, with the company expecting to complete 3,000–4,000m before demobilising for the wet season. Drilling will resume in 2027 to complete the program.
The placement comprises two tranches. Tranche one involves issuing 11.3 million shares to institutional, professional, and sophisticated investors using existing placement capacity under ASX listing rules.
Settlement is expected on 9 October, with shares issued around 12 October 2026.
Tranche two covers 384,615 shares for directors, requiring shareholder approval at a general meeting scheduled for 26 November 2026.
Blue Ocean Equities acted as sole lead manager and sole bookrunner for the placement.
The Orient Project hosts a mineral resource estimate of 62.5 million tonnes @ 81.5 grams per tonne silver equivalent, containing 45.9 million ounces of silver, 725 tonnes of indium, 341,000 tonnes of lead, and 421,000 tonnes of zinc. The company plans to complete a Scoping Study in early 2027.
Indium is classified as a critical mineral used in touchscreens and high-speed optical transceivers for data centres, with Orient having potential to become one of the world’s largest sources of indium-rich concentrate.
Iltani Resources is an explorer focused on base metals and critical minerals, with a portfolio of assets in Queensland and Tasmania.
Write to Paula Fabe at Mining.com.au
Main image: Iltani Resources
