Technology Metals Australia secures cornerstone shareholder support for $11.5 million placement

Technology Metals Australia (ASX:TMT) has received firm commitments from a significant shareholder to raise $11.5 million in a placement to support development of the Murchison Technology Metals Project (MTMP) in Western Australia.

The company reports about 41.1 million new shares will be issued at $0.28 per share. This share price represents a discount of 16.2% to the company’s 15-day volume-weighted average price (VWAP) of $0.334 per share, as well as a 13.8% discount to Technology Metals’ last closing price of $0.325 per share on 19 May 2023. 

Settlement of shares under the placement is expected to occur on or around 31 May 2023. 

Resource Capital Fund VII L.P., which has a 17.1% shareholding in the company, has committed to participate through the subscription for $2.75 million of the placement shares, which increases its existing cornerstone shareholding to about 18% of the issued capital post-placement.  

The funds raised will be used towards MTMP’s construction readiness, with a range of early work activities to be completed by the company’s project team to support the implementation of a smooth transition into construction, once all permits and approvals are received. 

Commenting on the placement, Technology Metals Australia Managing Director Ian Prentice says: “In our opinion, the investment from RCF VII further endorses the high-quality nature of our vanadium asset and gives us great confidence as we progress the MTMP towards development.

The investment from RCF VII further endorses the high-quality nature of our vanadium asset and gives us great confidence as we progress the MTMP towards development”

In addition, we are very pleased to welcome a number of new strategic and institutional shareholders to our register and acknowledge the support received from existing strategic and institutional investors, which ensured robust demand for the placement. 

The high-quality TMT team maintains a clear focus on the timely and efficient development of the MTMP to the benefit of all stakeholders and to deliver a secure, reliable supply of high-purity vanadium pentoxide to support the global transition towards net zero.”

Technology Metals Australia is an ASX-listed company focused on the development of its wholly owned flagship Murchison Technology Metals Project. The project is located 50km southeast of Meekatharra in the mid-west region of Western Australia and is one of the ‘highest-grade’ vanadium projects in the world.

Images: Technology Metals Australia Ltd
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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.