Impact Minerals (ASX:IPT) is conducting a two-for-seven renounceable rights issue to raise up to $5.2 million for development work at the Lake Hope High-Purity Alumina Project in Western Australia.
Under the rights issue, participants can purchase shares at $0.006 each, representing a 33% discount to the last closing price of $0.009.
For every two new shares subscribed for, eligible shareholders will receive one free attaching option exercisable at $0.015 expiring within two and a half years.
Impact Minerals, which has a market capitalisation of $27.53 million, says the rights issue will close on 21 March 2025.
The funds raised will be applied towards developing Lake Hope, as well as exploration across the Arkun and Broken Hill projects in Western Australia and New South Wales, respectively.
Chairman Peter Unsworth says the capital raising marks a pivotal moment for Impact.
“The Lake Hope Prefeasibility Study (PFS) is now in its final phase, following the successful completion of crucial testwork that, whilst delayed, has ultimately delivered the results we needed,” Unsworth says.
“We are now in a position to complete the PFS and take the next step towards commercialisation. To achieve this, we are raising equity capital through a renounceable rights issue, ensuring that all shareholders, not just professional and sophisticated investors, have the opportunity to participate in this critical phase of the company’s growth.
“This is the first time since acquiring the Lake Hope High-Purity Alumina Project that an equity raising has been extended to all shareholders.”
The rights issue is partially underwritten by lead manager and underwriter Mahe Capital.
Impact Minerals is an explorer and developer focused on establishing itself as a key player in the HPA industry.
Write to Aaliyah Rogan at Mining.com.au
Images: Impact Minerals
