Sky Metals (ASX:SKY) has received binding commitments to raise $20.5 million through a share placement to advance the Tallebung Tin Project in central New South Wales.
Under the terms of the placement, approximately 132.2 million new, fully-paid ordinary shares will be issued at $0.155 per share under two tranches, subject to shareholder approval.
The company intends to use the funds to advance Tallebung, with immediate plans including resource expansion and infill drilling to grow the newly-discovered ‘high-grade’ tin-silver-tungsten zones.
Sky is looking to deliver an updated mineral resource estimate (MRE) in Q2 2026.
Additional near-term plans include the completion of bulk sampling and metallurgical testwork, finalising environmental studies and approvals, and the preparation for upcoming mining feasibility studies.
CEO Oliver Davies notes the company’s appreciation to existing and new shareholders for their support.
“This pivotal capital raising puts SKY in a very strong position to accelerate development of the Tallebung Tin Project,” Davies says.
“The commitment shown by the board is also greatly appreciated and reflects our shared focus on driving the business forward as we enter an important period of growth and development, with Tallebung leading the portfolio as a unique near-term tin production opportunity and a key driver of SKY’s next phase of value creation.”
Bell Potter Securities acted as lead manager for the placement and will receive a fee of 5% of proceeds. Morgans Financial and Petra Capital were co-managers.
Sky Metals is focused on exploration and development of tin resources in Australia.
Write to Amy Rotman at Mining.com.au
Images: Sky Metals
