Podium Minerals (ASX:POD) has revealed its plans to build on recent ‘exciting’ breakthroughs by way of a $3 million (before costs) share purchase plan (SPP) at its Parks Reef Platinum Group Metals Project in Western Australia.
Podium reports the SPP is being undertaken to raise $3 million through the participation of its existing shareholders in order to support funding of critical activities and usher in feasibility studies for the Parks Reef Project.
The company notes the SPP comes off the back of ‘significant’ progress made by the company in advancing the project, including the definition of a ‘substantial’ 143 million tonne resource containing 6 million ounces 5E platinum group metal (PGM) plus base-metals, modelled to only 250m below surface to deliver Australia’s largest platinum resource.
Other achievements completed to date include drilling of deep holes intersecting the PGM reef at 500m below surface, which demonstrated the resource remains open at depth, and progressing of a world-class, down-stream processing pathway using its atmospheric leach process.
Additionally, key terms of the SPP include shareholders having the option to apply for up to $30,000 of new shares free of any brokerage or other transaction costs at an issue price of $0.072 per share, and the issuing of up to 41.666 million new shares.
The offer is scheduled to open at 9am (AEST) 13 April 2023 and close at 5pm (AWST) 5 May 2023. It is reported Joint Lead Managers Bell Potter Equity and Canaccord have been engaged by Podium to place any shortfall.
Addressing the feasibility studies, Podium Minerals Chief Executive Officer (CEO) and Managing Director, Sam Rodda, says: “We are bullish about the long-term future of the PGM industry and our project.
The industry is projecting demand growth into the next decade, with growing market deficits on the back of supply constraints from South Africa and Russia. PGMs are critical in decarbonising and removing toxic gases from the exhaust emissions of internal combustion engine vehicles.
Even more exciting is the outlook for Green Hydrogen, with PGMs critical to the production of hydrogen, as well as in the generation of power from hydrogen in the Fuel Cell.
“PGMs are critical in decarbonising and removing toxic gases from the exhaust emissions of internal combustion engine vehicles”
These, and other learnings from our recent visit to South Africa (the hearts of the world’s PGM supply), have guided the company in the development of targeted work programs that will accelerate the development of our metallurgical process, refine our understanding of the exceptional resource at Parks Reef, and feed into our project feasibility study.
We have a unique opportunity to build on the world class metallurgical results achieved to date from our atmospheric leach process and focus on developing a smelter-less process in Western Australia to produce a low carbon, low energy consumption, high-grade PGM product for refining in the world’s PGM Refineries. The SPP funding will allow us to sharpen our focus on critical project milestones and inform our feasibility studies.
Our objective is to develop a new Australian PGM supplier to the world’s markets at Parks Reef.”
The company also notes if excess funds are received it will use these funds to further develop and de-risk its innovative metal leach process, conducting tests at increased sample sizes and scale, and including variability testing from the likely starter mine location. This could also include bulk sample preparation for pilot plant testing, subject to funding availability.
Meanwhile, Podium announces it will move forward with other key project activities in order to drive feasibility studies.
Further activities include the continuation of optimisation of the metallurgical leach circuit, and definition of target PGM metal product specifications in order to enable market discussions with international PGM refineries and end-use customers.
Podium Minerals is an ASX-listed company focused on becoming a global preferred supplier of critical minerals, and Australia’s leading PGM producer. The company’s Parks Reef project is located 80km west of the township of Meekatharra in the mid-west region of Western Australia and represents Australia’s leading 5E PGM deposit.
The project is strategically positioned to deliver an Australian PGM supply and meet growing global demand for critical metals, which will be used to support the transition to a low carbon clean energy future through feed hydrogen fuel cell technological developments.
Images: Podium Minerals Ltd
