For this week’s Capital Crunch several mining companies announced they had raised capital to progress projects, including Critical Metals (NASDAQ:CRML) which raised US$22.5 million ($35.74 million).
As a result, Critical Metals has a strengthened balance sheet and is able to expedite development plans at the Tanbreez Rare Earth Project in Greenland and the Wolfsberg Lithium Project in Austria.
Under the placement, 4.5 million shares will be issued at US$5 per share.
European Lithium (ASX:EUR) holds 74.3% of Critical Metals’ shares and has invested over US$380 million based on the company’s closing share price of US$5.75 per share.
Through this interest, European Lithium is aligned with Critical Metals’ vision to become a key supplier for critical metals and the lithium-ion battery supply chain in Europe.
Meanwhile, WA Kaolin (ASX:WAK) is conducting an entitlement offer to raise $7 million to pursue its sales ramp up and strive to achieve positive cashflow.
Under the offer, one new share will be issued at $0.04 for every three shares held by eligible shareholders. The offer includes one free unlisted attaching option for every two new shares subscribed for, exercisable at $0.09 on or before 30 June 2027.
The issue price represents a 42.9% discount to the last closing price of $0.07 on 31 January 2025.
WA Kaolin has closed the accelerated portion of the entitlement offer, raising $2.64 million, under the same offer price. The new shares and attaching options are expected to be issued on 11 February 2025.
Evion Group (ASX:EVG) has also raised $2 million via a rights issue and shortfall placement which will be used to support expanding the Panthera Graphite Joint Venture in India.
The funds will be used to expand the plant capacity and production run rate at Panthera, as well as finalise permitting and licencing requirements for the Maniry Graphite Project in Madagascar.
In addition, the funds will support updating the battery anode materials study and general working capital purposes.
The rights issue raised $1.33 million, while the shortfall placement raised $660,000.
Under the offer, shareholders had the opportunity to subscribe for one new share for every three existing shares held at $0.023 per new share.
Euroz Hartleys acted as lead manager to the offer.
Further, Adelong Gold (ASX:ADG) completed a capital raising totalling $1.173 million via a placement which will be used for exploration drilling and project development activities.
The issue price for the placement was $0.0042 per share, representing a 23.7% discount to the last traded price of $0.055.
Adelong Gold says exploration drilling at its namesake project will target resource expansion across several deposits.
The funds will also support advancing the farm-in agreement with Great Divide Mining (ASX:GDM) to progress the Adelong Gold Project towards first gold production.
Further, the funds will be used for critical mineral exploration in Brazil and to evaluate strategic opportunities to enhance Adelong’s portfolio.
Write to Aaliyah Rogan at Mining.com.au
Images: European Lithium
