Norwest Minerals (ASX:NWM) has entered into a binding agreement to acquire 4 tenements prospective for niobium and rare earths in the West Arunta region of Western Australia.
The $6.90 million market capitalisation company will issue 1 million non-refundable shares on or before 15 February to privately held Amery Holdings and its shareholders of privately held 12-Mile Well.
Under the agreement, Norwest will issue 17 million shares within 2 days of completing a $1.076 million capital raising, as well as a $250,000 payment and 9 million listed options, subject to shareholder approval.
Norwest Minerals Chief Executive Officer (CEO) Charles Schaus says the company’s status as West Arunta explorer holding 1,560km-square of ground allows Norwest to accelerate exploration work across these tenements.
“In the meantime, Norwest is developing a number of carbonatite and other critical mineral targets from its significant geochemical database and recent geophysical analysis.”
The 360km-square ground package includes tenements that lie adjacent to tenements held by WA1 Resources (ASX:WA1) and Encounter Resources (ASX:ENR).
Further, Norwest is conducting a capital raising via the issue of 53.8 million new fully paid ordinary shares at an offer price of $0.02 per share, with one free attaching option in the same class as the company’s listed options.
The issue price represents a 23.1% discount to the last trading price of $0.026 and a 21.2% discount to the 15-day trading day volume weighted average price (VWAP).
Norwest expects to issue new shares on 23 February 2024.
Sanlam Wealth Management is acting as lead manager to the placement, which will receive a 6% fee of the gross amount raised under the capital raising.
Norwest Minerals is a Western Australian-focused mineral explorer with ‘highly prospective’ assets including rare earths, copper, gold, and base metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Norwest
