Terra Metals (ASX:TM1) has received commitments to raise $15 million via an institutional placement to fund further exploration at the Dante Project in the West Musgrave region of Western Australia.
The company will issue 214.29 million shares to investors at a price of $0.07, representing a 10% discount to the 15-day volume weighted average price of $0.078.
The placement will take place in two tranches, with about 96 million shares to be issued on or around 3 September, and a further 118.28 million shares subject to shareholder approval at an upcoming general meeting.
Petra Capital is acting as the lead manager and bookrunner for this placement, which was led by pre-existing shareholders privately held Golden Energy and Resources (GEAR), M Resources Founder Matt Latimore, and Tribeca Investment Partners.
CEO Thomas Line says the placement provides enough of a balance sheet for the company to “aggressively advance” the project.
“The scale of the system we are uncovering continues to grow, and with these additional funds we can now expedite drilling, resource growth, and development activities without being constrained by capital,” Line says.
“The follow-on investments from GEAR, Matt Latimore, and Tribeca underlines the quality of the project and the confidence in our strategy to rapidly advance this globally significant and growing discovery.”
Terra Metals is a mineral explorer focused on its portfolio of assets spanning Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Terra Metals
