Meteoric Resources (ASX:MEI) has increased its private placement to $42.5 million following strong investor demand, funding its flagship Caldeira Project towards a final investment decision (FID).
The company will issue around 304 million shares at $0.14 per share, which represents a 9.7% discount to its last trading price of $0.155 and 3.3% discount to the volume weighted average price of $0.145 as of close 18 July.
Canaccord Genuity and SCP Resource Finance acted as both joint lead managers and bookrunners for this placement.
Shares are expected to be settled on 29 July before allocated the next day, with cornerstone commitments from North American funds.
CEO Stuart Gale says the funding will allow the company to bolster the Caldeira Project with further investment and optimisation of its recently returned Prefeasibility Study (PFS).
“This includes the establishment of a pilot plant at Poços de Caldas to produce bulk samples of mixed rare earth carbonate for metallurgical testwork, customer validation and downstream development,” Gale says.
“Outcomes from these programs will feed into the Caldeira Project development and move us towards a final investment decision in 2026.”
This PFS highlighted a probable ore reserve of 103 million tonnes @ 4,091 parts per million total rare earth oxide (TREO) for 421,000 tonnes of contained TREO, as reported by Mining.com.au this week.
Along with its existing cash reserve, Meteoric intends to use funds towards streamlining a Definitive Feasibility Study (DFS) with engineering studies to be conducted shortly at the project.
The company will also push for environmental licensing and community programs, as well as development activities to convert the project’s existing 1.5 billion tonnes resource base.
“The Caldeira Project stands out as having the scale and both the technical and economic attributes required to support these new supply chains,” Gale adds.
Meteoric Resources is an explorer focused on the development of its Caldeira Project.
Write to Maddison Elliott at Mining.com.au
Images: Meteoric Resources
