Meteoric Resources (ASX:MEI) has received firm commitments to raise $25 million via a placement of 200 million shares at $0.125 per share.
The capital raise is a 13.8% discount to the last close of $0.145 (30 March 2023) and a 5.9% premium to the 15-day VWAP.
The placement has been strongly supported by Australian and international institutional investors.
Evolution Capital, Petra Capital, Euroz Hartleys, and Sprott Capital were co-managers for the placement, with Evolution Capital acting as a settlement agent.
Additionally, funds from the placement will be used primarily for the exploration and development of the tier-one ionic adsorption clay Caldeira Rare Earth Elements (REE) Project, following payment of the US$5 million completion payment.
Meteoric is targeting the release of a maiden Mineral Resource Estimate (MRE) reported within the JORC 2012 Code for Caldeira in late April. The company has engaged BNA Mining Solution in Brazil to complete the MRE.
Today’s announcement follows Meteoric’s decision yesterday to terminate the term sheet with Keystone Resources for the sale of the Juruena Gold Project in Brazil after the final trance payment of US$17.5 million was missed by Keystone.
As a result, Meteoric was forced to conduct a capital raising to allow it to meet its completion obligations and provide sufficient working capital to expedite the exploration and development of Caldeira.
Addressing the capital raise, Meteoric Resources Executive Chairman Dr Andrew Tunks says: “We are thrilled to have raised $25 million, which sees Meteoric fully funded to carry out our extensive work programs planned for Caldeira throughout 2023.
This will be a milestone year for Meteoric, with the release of the Caldeira MRE anticipated shortly and our ongoing and planned extensive Caldeira work programs, which will include resource infill and expansion drilling, geophysics, metallurgy, regional exploration across new areas located within Caldeira, the commencement of our Preliminary Economic Assessment and baseline Environmental Studies.”
“We are thrilled to have raised $25 million, which sees Meteoric fully funded to carry out our extensive work programs planned for Caldeira throughout 2023″
On completion of the capital raise, the company will be well-funded with a cash balance of about $27 million.
Meteoric reports the following 2023 work program at Caldeira includes, ‘significant’ further drilling, metallurgical test work, as well as the start of a Preliminary Economic Assessment fully funded.
As Meteoric nears the completion of the acquisition of the Caldeira REE Project, the company reports that Dr Andrew Tunks has been appointed Executive Chairman and Dr Marcelo de Carvalho has been appointed Executive Director – Chief Geologist.
The Juruena Gold Project is located in Brazil’s Mato Grosso region and currently boasts a JORC 2012 compliant global Mineral Resource Estimate (MRE) of 1.9Mt @ 387,000oz Au at 6.3g/t comprising three separate by adjacent gold deposits. The 3 deposits are reported to remain open at depth and are prospective for gold and copper-gold mineralisation, with potential to further increase the project MRE.
Images: Meteoric Resources NL
