OD6 Metals (ASX:OD6) has received firm commitments to raise $1.5 million in a placement to advance its Splinter Rock Rare Earth Project in Western Australia.
Alongside the placement, OD6, which has a market capitalisation of $8.91 million, will undertake a share purchase plan (SPP) to raise another $1 million, giving eligible shareholders the opportunity to participate in the capital raising on the same terms as the placement.
The proceeds will help to progress Splinter Rock towards development, including an infill drilling program at the Inside Centre prospect, as well as extensional drilling targeting Mineral Resource Estimate (MRE) growth.
Managing Director Brett Hazelden says the project has the potential to be a ‘world-class’ asset.
“Proceeds from the capital raising ensure OD6 is well funded to advance the Splinter Rock Project with a significant focus on the Inside Centre prospect,” he says.
“Metallurgical work to be undertaken at ANSTO, will look to optimise our already impressive leach recoveries and low reagent usage, with the next step of producing a high-quality mixed rare earth carbonate, that will enable discussions to be held with various potential strategic partners and off-takers.
“These works will then form the basis and the delivery of a Scoping Study scheduled for completion by calendar year end. We have a busy year to look forward to, as we further derisk our Splinter Rock Project and cements its place as Australia’s premier clay-hosted rare earth project.”
Under the placement, OD6 will issue more than 21 million new shares to investors at for $0.071 per share, representing an 18.4% discount to the last ASX closing price of $0.087 on 21 March 2024.
Settlement of the placement — for which Euroz Hartleys acted as the sole lead manager and bookrunner — is expected to occur on 5 April 2024.
Meanwhile, under the SPP, eligible shareholders can apply for up to $30,000 worth of shares at the same price as the placement.
The SPP offer period will open on 3 April 2024 and is expected to close on 23 April 2024.
Shares issued under the placement and SPP will rank ‘pari passu’ with existing OD6 ordinary shares from the respective dates of issue.
OD6 Metals is an Australian explorer and developer focused on rare earths and its project portfolio in the Esperance-Goldfields region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: OD6 Metals
