Parks Reef 5E PGM Project

Podium raising $6.6m to fund Parks Reef 5E PGM Project development

Podium Minerals (ASX:POD) reports it has launched a $6.6 million capital raise to help further develop its Parks Reef 5E PGM Project located in Western Australia.

The company notes it has received ‘firm commitments’ for a share placement to raise $2 million from new and existing shareholders at $0.22 per share.

Once the placement has been completed, offers will open for eligible shareholders to participate in a non-renounceable entitlement offer on the basis of one new share (at an issue price of $0.22 per share) for every 15 existing shares on issue to raise about $4.6 million.

The funds raised will support delivery of the new mineral resource estimate (MRE) expected in early Q4 2022 at Parks Reef, which is situated in an established mining precinct between Cue and Meekatharra in the Mid West Region of WA.

The placement and entitlement offer issue price represent a 20% discount to 10 VWAP and if fully subscribed and trading at the Theoretical Ex-Rights Price (TERP) of $0.26, Podium’s implied market capitalisation will be $87.5 million.

Commenting on the capital raise, Podium Managing Director Sam Rodda said: “We are thankful for the support of existing shareholders, and we welcome several new shareholders to the company with this recent capital raise.

The Podium team has been diligently progressing the necessary steps required to realise the world-class potential of the Parks Reefs Project and momentum is building across several workstreams.

In addition to global PGM supply uncertainty, the demand outlook for PGMs looks strong due to their importance as a catalyst in the development of hydrogen energy.

The rapid shift underway towards a decarbonised economy is driving investment in proposed green hydrogen production facilities in Western Australia and the location of Parks Reef may yet prove to be highly advantageous to these facilities.

The funds raised from this placement and entitlement offer will allow the company to continue the momentum from the last 6 months

The funds raised from this placement and entitlement offer will allow the company to continue the momentum from the last 6 months of successful progress.

Critical work to define a preferred processing pathway continue and will direct future priorities for the company and the development strategy for Parks Reef.”

Canaccord Genuity (Australia) acted as lead manager to the placement and will manage the entitlement offer.

The closing date of the entitlement offer is Friday 5 August 2022.

Podium’s extensive Parks Reef PGM Project comprises a 15km strike of near surface PGM-Au-base metal mineralisation.

The company has a revised exploration target of 70Mt to 75Mt at 1.2g/t to 1.6g/t 3E for 2.7Moz to 3.8Moz 3E PGM. This has been estimated by projecting the mineralised envelope currently within the Inferred Mineral Resource (IMR) block model to 250m depth, or 150m below the base of the IMR, along about 12km of strike.

The exploration target is supplementary to the IMR of 50.6Mt at 1.56g/t 3E PGM for the PGM horizon and an additional 27.8Mt at 0.24% copper and 0.30g/t 3E PGM for the adjacent base metal and gold horizon.

The IMR is based on 224 reverse circulation (RC) and diamond drill holes.

Images: Podium Minerals Limited
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.