OD6 Metals taps investors to advance Splinter Rock

OD6 Metals (ASX:OD6) has received firm commitments to raise $1.5 million in a placement to advance its Splinter Rock Rare Earth Project in Western Australia. 

Alongside the placement, OD6, which has a market capitalisation of $8.91 million, will undertake a share purchase plan (SPP) to raise another $1 million, giving eligible shareholders the opportunity to participate in the capital raising on the same terms as the placement. 

The proceeds will help to progress Splinter Rock towards development, including an infill drilling program at the Inside Centre prospect, as well as extensional drilling targeting Mineral Resource Estimate (MRE) growth. 

Managing Director Brett Hazelden says the project has the potential to be a ‘world-class’ asset. 

“Proceeds from the capital raising ensure OD6 is well funded to advance the Splinter Rock Project with a significant focus on the Inside Centre prospect,” he says.

“Metallurgical work to be undertaken at ANSTO, will look to optimise our already impressive leach recoveries and low reagent usage, with the next step of producing a high-quality mixed rare earth carbonate, that will enable discussions to be held with various potential strategic partners and off-takers. 

“These works will then form the basis and the delivery of a Scoping Study scheduled for completion by calendar year end. We have a busy year to look forward to, as we further derisk our Splinter Rock Project and cements its place as Australia’s premier clay-hosted rare earth project.”

Under the placement, OD6 will issue more than 21 million new shares to investors at for $0.071 per share, representing an 18.4% discount to the last ASX closing price of $0.087 on 21 March 2024. 

Settlement of the placement — for which Euroz Hartleys acted as the sole lead manager and bookrunner — is expected to occur on 5 April 2024. 

Meanwhile, under the SPP, eligible shareholders can apply for up to $30,000 worth of shares at the same price as the placement. 

The SPP offer period will open on 3 April 2024 and is expected to close on 23 April 2024. 

Shares issued under the placement and SPP will rank ‘pari passu’ with existing OD6 ordinary shares from the respective dates of issue. 

OD6 Metals is an Australian explorer and developer focused on rare earths and its project portfolio in the Esperance-Goldfields region of Western Australia. 

Write to Aaliyah Rogan at Mining.com.au   

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Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.

Pan Asia continues suspension amid placement progression

Pan Asia Metals (ASX:PAM) is expecting to continue a voluntary suspension until 21 March 2024 pending the release of an announcement in regard to a proposed equity raise. 

The company entered into a trading halt on 30 January 2024 and then released an announcement regarding a suspension from quotation on 1 February. 

Pan Asia notes the company remains in discussions with strategic investors regarding the participation in the placement. 

The company is advancing lithium assets in both South America and Asia including the Tama Atacama Lithium Project, which covers a 1,200km-square area and sits in the Atacama desert in Northern Chile. 

The Reung Kiet Lithium Project is considered to be a lepidolite-style lithium project that sits about 70km northeast of Phuket, Thailand. 

Pan Asia’s KT Lithium Project is a compilation of 5 special prospecting licence applications that lie in the Phang Nga province in Southern Thailand, covering a 45km-square area. 

Pan Asia Metals is a battery metals-focused explorer that is advancing lithium projects in South-East Asia and South America. 

Write to Aaliyah Rogan at Mining.com.au   

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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.

Gladiator Resources inks agreements for capital raise

Gladiator Resources (ASX:GLA) has received firm subscriptions for the placement of just over 133.333 million ordinary shares at $0.03 to raise $4 million.

Funds raised will be used towards the drilling program at Mkuju South West Corner, Tanzania commencing in May 2024.

Completion of the placement is expected to take place on 8 March 2024

This follows results reported on 10 January 2024, whereby the re-analysis of the samples that were ‘above detection’ limit of 4245ppm U3O8 have returned final grades as high as 7139 ppm U3O8 for the Southwest Corner Trench samples.

Gladiator Chairman Greg Johnson says the backing from Ian Stalker and his colleagues allow the company to progress drilling exploration in Tanzania.

“Particularly at South West Corner which has provided some outstanding trench assay results from the work completed late 2023. Apart from the financial backing, we are looking forward to drawing on Mr Stalker’s 45 years of hands-on experience in resource development, and particularly his background in Uranium gained during his time as CEO of Uramin before it was acquired by Areva S.A for US $2.7 billion in 2007.

We are particularly pleased that Mr Stalker and his colleagues have recognised the potential of this project and have the confidence in the company to back us with such a substantial injection of funds at this early stage of our exploration activities.”

Write to Adam Orlando at Mining.com.au

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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.

True North set for first US$18 million loan drawdown

True North Copper (ASX:TNC) has met all tranche one conditions precedent of the 4-year US$28 million ($42 million) senior secured loan with Nebari Natural Resources Credit Fund II LP. 

True North, which has a $52.79 million market capitalisation, says drawdown of tranche one of the loan facility (US$18 million), is scheduled for 9 February 2024. 

As part of the trance one facility True North will hold about $13.47 million on a term deposit paying about 5% per annum interest, with bank guarantees to be issued to satisfy its obligations with respect to rehabilitation bonding requirements, regarding the Cloncurry rehabilitation bond. 

Other terms of the tranche one payment include a fully repaid short term working capital loan of about $5.32 million to Dyda Property Management. 

Settlement of the initial payment is managed by True North’s legal representation, Holding Redlich and Steinepreis Paganini. All parties have agreed to the settlement. 

Managing Director Marty Costello says having ‘top-tier’ funding partners in the company’s corner is a ‘strong’ vote of confidence in its flagship Cloncurry Project.  

“We are looking forward to partnering with Nebari as we bring our Cloncurry Copper Project into production. We are incredibly proud to be working alongside international top-tier funding partners like Nebari and Tembo Capital and our toll processing and offtake partner Glencore International AG (LON:GLEN), who are all global leaders in their field. 

Their expertise and support have been crucial in our development and demonstrate what I believe is a strong vote of confidence in our Cloncurry Copper Project and its potential. We’re excited about restarting mining at the Cloncurry Copper Project, at a juncture when the global market is facing a looming copper supply gap.”

On 31 January 2024, True North Copper executed binding agreements and obtained Nebari Investment Committee clearance for the US$28 million senior secured loan with Nebari, as reported by Mining.com.au.

Costello said the company will utilise funds to “refinance the environmental bond, as the key step in our mining restart at the Cloncurry Copper Project, as well as provide working and restart capital”.

True North aims to start copper metal production at Cloncurry with mine plans combining the Great Australia Mine reserve and Wallace North resource into a single mining operation. 

Yesterday, the company announced it had defined a maiden ore reserve at its Wallace North Project, as part of Cloncurry, of about 700,000 tonnes grading 1.01% copper and 0.46 grams per tonne gold for 6,800 tonnes of copper and 10,000 ounces of gold. 

True North Copper is a precious metals-focused explorer headquartered in Cairns, Queensland. The company has assets across Queensland that are prospective for precious and critical minerals.

Write to Adam Drought at Mining.com.au

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Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.

Manuka pockets funding for Taranaki and Mt Boppy

Manuka Resources (ASX:MKR) has pocketed a combined $5 million that it says will help advance final approvals and studies at its Taranaki Project in New Zealand and Mt Boppy Project in New South Wales.

The Sydney-based miner and explorer will raise approximately $2.5 million via a placement to new and existing sophisticated investors. Under the placement, Manuka will issue more than 35.8 million shares at $0.07, representing a discount of 16.6% to the company’s last closing share price on 29 January of $0.084.

Of those shares, just over 13.8 million — worth $970,000 — will be issued to director-related entities, subject to shareholder approval.

The remaining $2.5 million will come from a debt conversion component of the placement.

Manuka says the proceeds will fund final regulatory approvals at its Taranaki Vanadium Titano Magnetite (VTM) Iron Sands Project off the coast of New Zealand, as well as project studies at its Mt Boppy Gold Project east of Cobar. A number of creditors will also be paid.

In addition to the $5 million raised through the placement and debt conversion, Manuka is looking to raise another $1 million through a share purchase plan. Eligible investors will be able to purchase up to $30,000 worth of shares — also at $0.07 — from 7 February 2024.

Write to Oliver Gray at Mining.com.au

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Originally from Perth, Oliver has a keen interest long-form journalism. He has written for a number of publications and was most recently Contributing Editor of The Market Herald’s opinion section, Art of the Essay.

Yandal turns to investors for top-up

Gold explorer Yandal Resources (ASX:YRL) has launched its second capital raise in just over 2 months, this time tapping investors for $2.5 million via a share placement. 

It’s a ‘top-up’ of the $4 million placement undertaken in November 2023, according to Yandal, and comes on the back of the ‘positive’ drill results from the company’s Ironstone Well-Barwidgee Gold Project in Western Australia announced on 12 January

Given the quality of the drilling results, Yandal has now made the call to raise extra funds to accelerate and expand its drilling work in the area. 

The $2.5 million top-up will help fund reverse circulation (RC) and diamond drill testing, as well as mineral resource estimate (MRE)-related work, at exploration targets within the Ironstone Well-Barwidgee area. Yandal also plans to put a portion of the funding towards work at its Mt McClure and Gordons projects. 

Under the placement, Yandal will issue 31.2 million new shares to professional and sophisticated investors, as well as existing shareholders, at $0.08 per share to raise $2.5 million. 

This offer price marks a 5.9% discount to Yandal’s 5-day volume-weighted average price and an 11.1% discount to its last trading price. 

MST Financial acted as lead manager to the placement.

And it seems investors are supportive of the move; not only has the placement been oversubscribed, but shares in Yandal Resources were up 22.22% to $0.11 as of 12:45pm AEDT on 2 February 2024. 

Yandal Managing Director Tim Kennedy says the placement is evidence that investors are keen to see the company have a ‘solid funding runway’ to expand and accelerate exploration at its key targets. 

“We are in the advanced planning stage of our forthcoming drilling program at Ironstone Well-Barwidgee in the Northern Yandal Belt, which will include RC and diamond drill testing of key targets including Oblique, Quarter Moon, and New England Granite. 

Weather permitting, we expect to mobilise in early March and look forward to reporting progress as results come to hand.”

Following the settlement of the new placement, Yandal expects to have around $7.7 million cash at hand to fund its exploration work. 

Write to Joshua Smith at Mining.com.au 

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Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.

Basin Energy taps investors for $3.3 million 

Basin Energy (ASX:BSN) has received firm commitments to raise $3.3 million through a share placement of 20.9 million shares at $0.16 per share. 

Canaccord Genuity, Discovery Capital, and Cumulus Wealth Management are acting as joint lead managers to the offer.

Basin, which has a $15.44 million market capitalisation says the placement has received ‘exceptional’ support from existing and new domestic and offshore institutions. 

Funds will be used towards a proposed maiden drilling program at the North Millenium Project about 7km north of Cameco’s (NYSE:CCJ) Millennium uranium deposit, which holds about 104.8 million pounds of triuranium octoxide at an average grade of 3.76%. 

They will also be used to complete Q1 ground geophysics at North Millenium and the Marshall Project, Q1 drilling at the Geikie Project, and Q2 drilling at North Millenium. 

Managing Director Pete Moorhouse says: “Basin is delighted by the support received by the offer, and the exceptional standard of institutional investment we now add to our existing quality register. Basin controls a premium land package with multiple exceptional uranium exploration prospects.

On behalf of the Basin board, I would like to thank our existing shareholders for their ongoing support and welcome new holders as we continue to explore in the heartland of the world’s premier uranium district.”

The placement represents a 13.5% discount to the last-close on 31 January 2024 ($0.185) and a 10.4% discount to the 15-day volume weighted average price ($0.179). 

Basin Energy is a uranium explorer and developer with an interest in 3 ‘highly prospective’ projects positioned in the southeast corner and margins of the Athabasca Basin. 

As of 30 December 2023, Basin Energy had $3.4 million cash and cash equivalents at hand, according to its latest quarterly report. However, the company is looking to add an extra $3.3 million through today’s (2 February 2024) placement.

Write to Adam Drought at Mining.com.au

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Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.

WA1 taps investors for $40 million

WA1 Resources (ASX:WA1) has received firm commitments to raise $40 million via a placement to institutional, sophisticated, and professional investors. 

The $638.72 million market capitalisation company deploy the funds raised towards drilling and exploration activities at its West Arunta Project in Western Australia. The activities include metallurgical testwork, process and project studies, and permitting activities. 

Canaccord Genuity acted as sole lead manager, while privately held MST Financial Services and Bell Potter Securities acted as co-managers to the placement. 

WA1 Managing Director Paul Savich says these additional funds support a continuation of ‘major’ de-risking and critical path activities for West Arunta. 

“This work will progress alongside exploration and resource drilling, along with the estimation of an initial mineral resource for Luni in the June quarter of 2024.”

Under the placement, WA1 will issue 4 million new fully paid ordinary shares in WA1 at $10 per share, representing a 5.5% discount to the 30-day volume weighted average price (VWAP) and a 10.2% discount to the last traded price of WA1 shares. 

The company notes that there are a ‘significant’ number of assay results from the 2023 drilling campaign still outstanding. WA1 expects to report these results this quarter, as they prepare to begin the 2024 field season.

WA1 Resources is a mineral explorer focused on its 3 assets operating within Western Australia.

Write to Aaliyah Rogan at Mining.com.au  

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Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.

Evolution extends $60 million SPP

Evolution Mining (ASX:EVN) has extended a previously announced share purchase plan (SPP) to raise up to $60 million, from 16 January to 30 January 2024. 

The $7.36 billion market capitalisation company will be using the funds raised to partly fund the acquisition of an 80% interest in the Northparkes Copper-Gold Mine from CMOC Group (SHA:603993) for a total cash consideration of up to US$475 million. 

Evolution says the extension will allow sufficient time for all eligible shareholders to participate and complete applications following the Christmas and New Year holiday period. 

Eligible shareholders participating in the SPP will be able to purchase shares up to $30,000 at $3.80 per share — which is the same price paid by institutional investors under the placement previously reported.

The price represents a 2.5% discount to the 5-day volume weighted average price (VWAP) of shares traded on the ASX up to the revised SPP closing date. 

Evolution Mining is a gold miner that operates 5 wholly owned mines in New South Wales, Western Australia, Queensland, and Ontario, Canada.

Write to Aaliyah Rogan at Mining.com.au    

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Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.

Forrestania taps shareholders for $1.53 million to advance WA projects

Forrestania Resources (ASX:FRS) is looking to advance its portfolio of lithium, copper, and gold projects in Western Australia through a $1.53 million renounceable entitlement offer.

The $3.58 million market capitalisation company says the funds will be used to advance exploration work and test priority lithium and copper targets across its Western Australian and Eastern Goldfields projects, with remaining proceeds to be used for general working capital.  

Under the offer, eligible shareholders can apply for one new share for every 2 shares held at $0.03 a pop — a 30% discount to the company’s 30-day volume-weighted average price (VWAP) of $0.043 and a 60% discount to its 90-day VWAP of $0.075. 

Forrestania reports every 2 shares subscribed for under the offer will be issued with one free option exercisable at $0.075 each on or before 20 November 2025. 

The entitlement issue is partially underwritten to $750,000 by lead manager Mahe Capital, and shareholders can trade their rights or apply for additional shares and options from Wednesday 25 October 2023. 

The company notes the offer is ‘strongly supported’ by its board of directors, who have committed to subscribe for entitlements for a total of $105,000. 

Forrestania Resources Managing Director Michael Anderson says the company remains focused on unlocking the potential of the ‘highly prospective’ belt that holds its assets.  

“The team has continued our systematic exploration of the Forrestania Project, delivering a number of positive outcomes including drilling ore-grade lithium mineralisation and visible spodumene at both the Giant and South Iron Cap East projects and locating stacked pegmatite systems at Calypso in proximity to known mineralisation. 

Given we are on the doorstep of the world-class Mt Holland lithium deposit, and significant gold and nickel mines, we remain confident that we are doing the right things in the right areas, and there is plenty more still to do as we aim to unlock the discovery potential in this highly prospective belt. 

In addition, since expanding the footprint of the Eastern Goldfields Project, we have generated numerous new targets for both lithium and copper that these funds will allow us to drill. 

As always, we intend to be proactive and focused in undertaking our work across the portfolio on these priority targets and shareholders can expect further significant news flow in the coming months.”

“we remain confident that we are doing the right things in the right areas, and there is plenty more still to do as we aim to unlock the discovery potential in this highly prospective belt”

Forrestania Resources is a lithium, gold, and nickel explorer with a portfolio of projects located in the Forrestania, Southern Cross, and Eastern Goldfields regions of Western Australia, as well as the James Bay region of Quebec, Canada. 

The company’s flagship Forrestania Project is considered prospective for lithium, gold, and nickel mineralisation and has a tenement footprint spanning about 100km within the ‘well-endowed’ southern Forrestania Greenstone Belt. 

Forrestania Resources had $2.117 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report. 

Write to Adam Drought at Mining.com.au

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Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.

Astral Resources extends SPP closing date

Gold and base metals explorer Astral Resources (ASX:AAR) has extended the closing date of its recently opened $2 million share purchase plan (SPP) by a week.

The offer opened on August 11 and was initially set to close at 5pm on Friday 1 September. Now, Astral has extended the closing date to Friday 8 September to give eligible shareholders more time to consider and respond to the offer.

Under the terms of the offer, eligible shareholders can subscribe for up to $30,000 new Astral shares at $0.065 per share without incurring any brokerage or transaction costs. All up, Astral is seeking to raise $2 million from the SPP, though the company has the right to accept oversubscription and scale back applications as it sees fit.

The SPP follows a $3 million share placement announced on 31 July, with placement shares also priced at $0.065. This represents a discount of 15.7% to Astral’s five-day volume-weighted average price leading up to the announcement of the placement and SPP.

Astral plans to use the placement and SPP funds to advance resource definition drilling and technical and feasibility studies at its Mandilla and Feysville Gold Projects near Kalgoorlie in Western Australia. The funding boost will also help the company advance a Scoping Study for Mandilla, which is on track to be released before the end of 2023.

Under the new SPP timeline, new shares will be quoted on the ASX on 18 September.

Astral Resources owns a portfolio of projects in the Kalgoorlie-Kambalda region of Western Australia. 

The company’s Mandilla project lies roughly 770km south of the township of Kalgoorlie and 20km east of Kambalada, while Feysville is situated about 14km south of the Golden Mile deposit at Kalgoorlie. 

Astral Resources had $1.3 million cash at hand as of 30 June 2023, according to its latest quarterly report, though this was, of course, prior to the launch of the placement and SPP.

Write to Joshua Smith at Mining.com.au

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Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.