Metallica Minerals (ASX:MLM) reports it has received a large show of support for its fully underwritten placement to raise $5.075 million and a non-renounceable pro rata entitlement offer of over $4.518 million to help fund its Cape Flattery Silica Sand project (CFS).
Metallica reports the placement was completed with significant support from global silica sand specialist Sibelco and continued support from existing substantial shareholders, Ilwella, and SPARTA AG. In addition to the purchase of the shares in the placement, Ilwella, Sparta AG, and Sibelco have agreed to take up their entitlement under the entitlement offer.
Once the new funds have been received, Metallica will have about $12 million in its coffers to progress a significant works program in 2023 including completing the Definitive Feasibility Study (DFS); finalising the environmental applications for the CFS project and associated environmental studies; and finalising negotiations with the Traditional Landowners.
The capital will also allow the company to progress existing MOU arrangements and new marketing initiatives.
The offer was fully underwritten by Morgans Corporate.
Addressing the capital raise, Metallica Executive Chairman, Theo Psaros says: “We are delighted this placement has enabled existing shareholders including Sibelco, Ilwella and SPARTA AG, to show their continued support for Metallica. It has also provided the company with the opportunity to welcome new institutional investors to the register.
“This show of support represents a significant endorsement of Metallica’s ambitions to provide high-quality silica to global markets”
This show of support represents a significant endorsement of Metallica’s ambitions to provide high-quality silica to global markets and sends a strong positive signal to potential future customers that Metallica is well positioned to progress the development of the Cape Flattery Silica Sand project.
The commercial environment for silica sand remains buoyant given ongoing strong demand from Asia-Pacific glass manufacturers supplying the solar panel industry. Our recent Prefeasibility Study has highlighted the world-class potential of our Cape Flattery Silica Sand project and we are looking forward to the opportunity to be a valuable contributor to the global energy transition.
This placement and entitlement offer will enable us to strengthen our cash reserves for the continuation of the Definitive Feasibility Study that is underway.”
The closing date for the offers is 16 December 2022.
Metallica’s 100% owned CFS project is located in the Cape Flattery area, on the eastern coastline of Cape York Peninsula, 220km north of Cairns, and 55km from Cooktown. The company is developing the project adjacent to the longstanding Cape Flattery Silica Sand mining and shipping operation owned by the Mitsubishi Corporation (TYO:8058).
Write to Adam Orlando at Mining.com.au
Images: Metallica Minerals Ltd
