Polymetals Resources (ASX:POL) is conducting a placement to raise $35 million to fund the restart of the Endeavor Zinc-Silver Mine in New South Wales.
Under the placement, 43.75 million shares will be issued at $0.80 per share which represents a 6.4% discount to the closing price of $0.855.
Blue Ocean Equities and Ord Minnett are acting as joint lead managers to the placement, while Arlington Group Asset Management is acting as a selling agent.
The placement is expected to be settled on 14 February 2025.
Polymetals, which has a market capitalisation of $168.98 million, will use the funds to strengthen its balance sheet as it transitions towards silver and zinc production in Q2 2025.
The company will also use $10 million across 2025 and 2026 for exploration activities both near mine and regionally across its assets, including the Carpark prospect. Funds will also be used for general working capital purposes.
Executive Chairman Dave Sproule says Endeavor’s restart activities remain on track and the funds allow the company to step up its exploration work.
In addition to the placement, Polymetals is offering eligible shareholders to apply for new shares via a non-underwritten share purchase plan (SPP). The company aims to raise $3.2 million at the same offer price as the placement.
Eligible shareholders will be able to apply for up to $30,000 worth of new shares.
The Endeavor Mine is located 40km north of Cobar in New South Wales. The project is the second largest mine behind the CSA Copper Mine in Australia’s polymetallic region known as the Cobar Basin.
Polymetals is focused on becoming Australia’s next silver and zinc producer via the Endeavor Mine.
Write to Aaliyah Rogan at Mining.com.au
Images: Polymetals Resources
