MTM raising $7 million for REE exploration

MTM Critical Metals (ASX:MTM) has received firm commitments for a two-tranche placement to raise $5 million, as well as a non-renounceable entitlement offer to raise an additional $2 million. 

The $11.43 million market capitalisation company will be using the funds raised for metallurgical testing at the Pomme and East Laverton Rare Earth Element (REE) projects. 

Funds raised will also be put towards exploration at the new West Arunta and Mukinbudin licences.

MTM Managing Director Lachlan Reynolds says in regard to the company’s recently announced acquisition of privately held company Flash Metals, Flash holds an option to exclusively negotiate the rights to the Flash Joule Heating technology developed by Rice University. 

This demonstrates the potential to treat REE mineralisation and more efficiently recover critical metals from critical metal-rich recycling and waste streams.

“Proceeds from the capital raise will allow the company to carry out exploration of its new and existing tenements and invest in the advancement of the Flash Joule technology.” 

The company will allocate funds to advance the development and testing of the Flash Joule Heating processing plant. 

For the placement, MTM will issue 62.5 million fully paid ordinary shares at $0.08 per new share. For every 2 new shares purchased, one free attaching option will also be issued. 

The offer price of $0.08 per share, represents a discount of 3% to the 12-day volume weighted average price (VWAP) during the announcing of its Flash Metals acquisition on 19 December 2023. 

Subject to shareholder approval, MTM directors have committed to increase their shareholding in the company with a combined bid of up to $400,000. 

Meanwhile, the non-renounceable pro-rata entitlement offer includes the issue of one new share for every 4 shares held on the record date of 5 February 2024, at the same price as the placement. 

If the entitlement offer is fully subscribed, meaning 24.859 million new shares being issued, eligible shareholders can apply under a top-up offer for new shares and quoted options not subscribed for by other eligible shareholders, pursuant to the offer on the same terms. 

MTM Critical Metals is a diversified minerals explorer focused on REEs, gold, lithium, nickel, and base metals in the Goldfields region of Western Australia and the Abitibi region of Quebec, Canada.

Write to Aaliyah Rogan at Mining.com.au      

Images: MTM Critical Metals
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.