Pivotal Metals (ASX:PVT) is raising $3 million via a combination of a flow-through shares placement and a placement of ordinary shares to advance its Horden Lake and BAGB projects in Québec, Canada.
Under the flow-through shares placement, which aims to raise $2.02 million, 106.25 million shares will be issued at $0.019 per share. The issue price represents a 90% premium to the concurrent institutional placement and a 36% premium to the closing price of Pivotal Metals on 18 September 2024.
The placement is facilitated by Canadian flow-through share dealer, Wealth Creation Preservation and Donation Inc.
Managing Director Ivan Fairhall says Québec’s critical minerals flow-through shares incentives are the “most generous” in Canada, and it’s an incentive scheme which is unparalleled globally.
“The premium share issuance carries the benefits of Canadian tax credits that bring 90% leverage on committed exploration focused funding, without dilution or overhang risk,” Fairhall says.
“Put another way, effectively the Canadian Government is providing up-front payment for almost half of our exploration cost — it simply doesn’t get better than that.”
Pivotal Metals, which has a market capitalisation of $9.85 million, will also conduct an institutional placement, raising $1 million, at $0.01 per share via the issue of 96.25 million shares.
The offer price represents a 18.8% discount to the 15-day volume weighted average price (VWAP), and 28.6% discount to the last closing price on 18 September 2024.
Morgans Financial acted as lead manager to the institutional placement, as well as to the secondary share of the flow-through shares.
Funds will be used to advance exploration work across the company’s Québec project portfolio, including a metallurgical testwork program and resource update at the Horden Lake deposit.
The funds will also be used for further exploration and target delineation at Horden Lake, alongside technical studies to define and de-risk the pathway to evaluation and evaluating and exploring the BAGB Project, which hosts multiple targets for new discoveries of scale.
Fairhall adds that the funds strengthen Pivotal’s balance sheet and allows the company to expand the work program in Canada.
“In particular at Horden Lake, where we will deliver metallurgical testwork, upgrade resources, and continue exploration of this exciting deposit which we’ve shown has tremendous potential to continue to grow, and contribute considerable value to Pivotal Metals.”
On 19 September 2024, Pivotal announced step-out drilling demonstrated continuity between the two open pit resource areas at Horden Lake. The latest results show multiple wide zones at shallow depths in drillhole HN-24-123.
Horden Lake is a copper-dominant project that lies 140km north of Matagami in northwest Québec.
Meanwhile, BAGB covers a 157km2 area in the highly prospective Belleterre-Angliers Greenstone Belt.
Pivotal Metals is an explorer and developer focused on its critical minerals projects in Canada. The company aims to build on historic exploration work to make discoveries of scale.
Write to Aaliyah Rogan at Mining.com.au
Images: Pivotal Metals
