Impact Minerals (ASX:IPT) is set to raise $3 million to fund a Pre-Feasibility Study (PFS) at its Lake Hope High-Purity Alumina Project in Western Australia.
Under the placement, 150 million shares will be issued at $0.02 per share. For every three shares subscribed, one free-attaching option will be issued, exercisable at $0.027 for a 15-month period.
The issue price represents a 5.6% discount to the 15-day volume-weighted average price on 15 May 2024.
Impact, which has a market capitalisation of $63 million, plans to use $1.5 million of the proceeds to complete the PFS and $500,000 for exploration at the Arkun Project.
Separate from the placement, the company is expecting to receive another $395,000 from a research and development rebate and $193,000 from the conversion of certain options.
Managing Director Dr Mike Jones says the company is now fully funded for the PFS, which is due for completion by the end of this year.
“As well as the Lake Hope Project, we will also be able to progress our Arkun battery and strategic metals project for which we recently received up to $180,000 in co-funding from the Western Australian government’s Exploration Incentive Scheme for drilling of our exciting Caligula copper target,” he says.
The remaining proceeds will be used for general working capital and placement costs.
Evolution Capital and Barclay Pearce Capital acted as joint lead managers to the placement.
The company plans to issue the placement shares and options on or about 24 May 2024.
Write to Aaliyah Rogan at Mining.com.au
Images: Impact Minerals
