Terra Metals (ASX:TM1) is raising $85 million through a placement to fund exploration at the Southwest prospect within the company’s wholly owned Dante Project in Western Australia.
The company will issue 229.74 million shares at $0.37 each, representing an 8.6% discount to the last closing price and 10-day volume weighted average price of $0.405 per share.
Petra Capital is acting as the lead manager and bookrunner for this placement.
The placement includes support from major shareholders Golden Energy and Resources (GEAR), Tribeca Investment Partners, Matthew Latimore, and Martin Otway, as well as Washington H. Soul Pattinson and Company (ASX:SOL).
CEO Thomas Line has also subscribed for $100,000 in this placement, along with Chief Geologist Solomon Buckman for $120,000.
Line says the placement is a “defining moment” for the company.
“The scale and quality of support – including commitments from GEAR, Tribeca and Soul Patts (Washington H. Soul Pattinson and Company) – underscores the growing recognition that Southwest is emerging as a globally significant PGM (platinum group metal) sulfide discovery within the broader Dante Project,” Line says.
“Importantly, Southwest is just one of multiple large-scale magmatic PGE-Cu-Ni (platinum group elements-copper-nickel) sulfide targets we have identified across our 100% owned, district-scale landholding.
“This capital gives us the ability not only to aggressively advance extensional and infill drilling at Southwest toward resource definition and economic studies, but also to systematically unlock the substantial exploration upside across the wider Dante corridor.
“We now have the balance sheet strength to pursue scale, accelerate discovery and position Terra as a globally relevant critical minerals platform.”
As reported by Mining.com.au, Terra has identified a ‘substantial’ mineralised intrusive complex extending over 850m of strike between SW5 and SW6 from three drillholes at the Southwest prospect.
The latest assays have recorded up to 17.8 grams per tonne platinum, in comparison to previous reports of palladium-dominant mineralisation.
Terra Metals is focused on the development of its Dante Project, located in the West Musgrave region of Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Terra Metals
