Impact Minerals (ASX:IPT) has raised $3.63 million via a renounceable rights issue which will be used to complete a Prefeasibility Study (PFS) for the Lake Hope High-Purity Alumina Project in Western Australia.
As part of the rights issue, about 605.45 million shares will be issued and just over 302.72 million options exercisable at $0.015, expiring on 28 September 2027.
Mahe Capital acted as lead manager and underwriter to the rights issue.
Impact Minerals, which has a market capitalisation of $18.58 million, says the funds will also be applied to a drilling program at the Caligula copper-nickel-platinum group metals target, as well as exploration at the Arkun and Broken Hill projects in Western Australia and New South Wales, respectively.
Managing Director Dr Mike Jones says the Caligula drilling program will start in the coming weeks upon receiving statutory approvals.
“With a 70% take up rate, we are very pleased with the outcome of our rights issue in light of the market conditions during the raise,” Jones says.
The Lake Hope Project, covering 238km2, encompasses several promising salt lakes stretching from Hyden to Norseman in southern Western Australia.
Impact Minerals is focused on establishing itself as a key player in the HPA industry.
According to Strategic Market Research, the global HPA market was estimated at $3.8 billion in 2023 and is anticipated to increase by a compound annual growth rate of 21.6% from 2023 to 2030.
HPA is a high-value, high-purity form of aluminium oxide with a minimum purity level of 99.99%.
The growth of the HPA market is driven by numerous factors, including the rising need for HPA in the electronics industry for the production of sapphire substrates used in LEDs and semiconductors, alongside growing the adoption of EVs, which require HPA for producing lithium-ion batteries.
Write to Aaliyah Rogan at Mining.com.au
Images: Impact Minerals
