Terra Metals (ASX:TM1) has received commitments from strategic investors, Golden Energy and Resources (GEAR) and Matthew Latimore, to raise $4 million for its wholly owned Dante Project.
The company will issue a total of 114.29 million shares at a price of $0.035 per share, with the two-tranche placement comprising the issue of 62.76 million shares on 19 June, before the remaining 51.52 million shares following shareholder approval.
An upcoming general meeting will be announced to shareholders shortly to seek approval.
Terra’s largest shareholder, Tribeca Investment Partners, has also agreed to subscribe for additional shares to maintain its 15% stake in the company, which is also subject to shareholder approval.
The issue price represents a 16.7% discount to the last closing price, as well as a 1.6% premium to the 30-day volume weighted average price of $0.035 per share.
The company, which has a market capitalisation of $17.43 million, intends on using these funds to begin extensional, infill, and resource drilling at the Dante Project, as well as drill testing the upside potential of the project.
CEO Thomas Line says commitments from the two parties is a milestone for the company, and further validates the potential of the Dante Project to have multigenerational resources with expansive mineralisation that resembles a coal seam.
“Dante has proven exceptional metallurgical performance from first pass testwork, with optimisation continuing. The maiden resource estimation is also currently underway, based on approximately 10% of the outcropping strike,” Line says.
“This investment from strategic investors is a clear validation for the immense scale potential of the Dante Project.”
Located in the West Musgrave region of Western Australia, Terra recently progressed to phase three at its flagship project, with on-ground and reconnaissance exploration aiming to upgrade its resource estimate, as reported by Mining.com.au.
GEAR is a resources company that operates mining of metallurgical coal through its two subsidiaries, Stanmore Resources (ASX:SMR) and Illawarra Coal Holdings.
Matthew Latimore is the founder and President of M Resources, which holds 55% of Mastermyne (ASX:MYE), 50% of Magnetic Infrastructure Group, as well as almost 5% of shares in Stanmore Resources (ASX:SMR).
Terra Metals is an Australian explorer, focused on the development of its portfolio of projects across Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Terra Metals
