OD6 Metals (ASX:OD6) raised $292,000 under a previously reported share purchase plan (SPP) which closed on 23 April 2024.
A total of 4.112 million new ordinary shares in OD6 will be issued to eligible applicants at $0.071 per new share.
The new shares are expected to be issued on 30 April 2024 and to begin trading on 2 May 2024.
Proceeds from the SPP and a previously reported placement will support OD6 to progress its Splinter Rock Rare Earths Project in Western Australia, towards development.
Activities will include an infill drilling program at the Inside Centre prospect, as well as extensional drilling which will be targeting resource growth.
Managing Director Brett Hazelden says the funds will be used for ongoing metallurgical work being conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) with the aim of producing a mixed rare earth carbonate, which will form the basis of a Scoping Study scheduled for completion by the end of the calendar year.
In the company’s latest quarterly report also released today (29 April), OD6 reports further metallurgical leaching and processing optimisation work is underway at Splinter Rock after previously reported results provided an enhanced understanding of specific areas.
OD6 rounded out the first quarter of the year with recoveries of up to 90% magnet rare earth elements — including neodymium, praseodymium, dysprosium and terbium — across multiple prospects. Average recoveries were around 62%, with the Inside Centre prospect the “standout”, according to OD6, with average recoveries of 64%.
Samples have been selected from a variety of different clays, locations, and depths, to continue building a geo-metallurgical understanding of recovery across the four main prospects at Splinter Rock.
OD6 adds that mineralogy characterisation and testing is being conducted in parallel with the Commonwealth Scientific and Industrial Research Organisation, ANSTO and Murdoch University.
The company says determining the mineralogical composition of the high-grade areas is key to designing an economically successful processing facility.
Heritage surveys are also continuing for the proposed phase-four drill program at Splinter Rock. The new heritage surveys include close-spaced drill lines and additional regional target reconnaissance.
Meanwhile, spring environmental surveys have been completed at Splinter Rock, which enable infill drilling and new drill tracks for regional drilling to be conducted. The data has been provided to the Department of Energy, Mines, Industry Regulation and Safety to assist in timely approvals for permits of work.
The Splinter Rock project lies in the Esperance-Goldfields region of Western Australia.
OD6 Metals is an Australian rare earths-focused explorer and developer. The company wholly owns the Splinter Rock and Grass Patch projects which are both located in Western Australia.
As of 31 March 2024, the company had $1.218 million in cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: OD6 Metals
