Australian miner and explorer Polymetals Resources (ASX:POL) is raising $3.65 million through a placement to fund its Mine Restart Strategy (MRS) at the Endeavor Lead-Zinc-Silver Project in New South Wales.
Under the placement, the company is issuing about 11.777 million shares to new investors at $0.31 per share, which represents a 6% discount to Polymetals’ 30-day volume weighted average price (VWAP).
Frankfurt-listed investment firm Sparta AG (FRA:SPT6) provided about $2 million in a cornerstone contribution to the placement to secure 6.45 million Polymetals shares, alongside global trading firm Ocean Partners, which also contributed a US$10 million concentrate offtake facility. Bell Potter acted as lead manager to the placement.
Polymetals reports the funds raised will be used to progress the MRS, in-mine exploration, care and maintenance costs at Endeavor, and general working capital.
Commenting on the placement, Polymetals Resources Executive Chairman Dave Sproule says: “The support received through the placement to new cornerstone and institutional investors is a strong endorsement of the Endeavor project and confidence in Polymetals’ ability to execute on its plan to recommence mining at Endeavor.
“The support received through the placement to new cornerstone and institutional investors is a strong endorsement of the Endeavor project…”
We welcome our new shareholders and look forward to delivering a positive Mine Restart Study and continue to build significant value for the company’s shareholders and positive outcomes for the Cobar region.”
Polymetals Resources is an Australian miner and explorer focused on its cornerstone asset, the Endeavor Silver-Zinc-Lead Mine, in the Cobar region of New South Wales. Along with Endeavor, the company also holds the Alahiné and Mansala gold projects in Guinea.
In May 2023, the company delineated a total mineral resource of 16.3 million tonnes @ 8% Zn, 4.5% Pb, and 84g/t Ag for 1.3 million tonnes of zinc, 0.73 million tonnes of lead, and 44 million ounces of silver at Endeavor.
According to Polymetals’ latest quarterly report published on 28 April 2023, the company had $337,902 cash at hand and access to $500,000 in undrawn finance facilities as of 31 March 2023. The company has also been approved for a NSW Critical Minerals Grant of $500,000, with at least $250,000 received during the June quarter.
Write to Harry Mulholland at Mining.com.au
Images: Polymetals Resources Ltd
