Victory Metals (ASX:VTM) has received firm commitments from investors to raise $11.5 million, funding a targeted drilling program across the North Stanmore Project in Western Australia.
The company will issue around 8.5 million shares at $1.35 per share, representing a 15% discount to the 15-day volume weighted average price as of 25 August, before its trading halt.
Bell Potter Securities is acting as the lead manager and bookrunner, returning a cash fee of up to 6% of placement’s gross proceeds and 1 million unlisted options valued at $2.70 per option for a three-year exercise period.
The company intends to achieve up to 83% of heavy rare earth oxide and total rare earth oxide across the resource estimate area of the project.
CEO Brendan Clark says the company is grateful for the support from existing shareholders, as well as newcomers that join in time for this placement.
“This raise will support the momentum in development of North Stanmore as it emerges as one of the world’s most advanced heavy rare earth clay projects and is already Australia’s leading heavy rare earth project,” Clark says.
Victory Metals has also shared that it will no longer be proceeding with Sanabil Investments’ loan offer to provide full project funding.
The company will continue to expedite funding discussions with different strategic and government partners, along with its US$190 million ($293.27 million) letter of interest from the Export-Import Bank of the United States.
Victory Metals returned a resource estimate for the North Stanmore Project earlier this month, hosting 320.6 million tonnes mainly within the indicated category.
Write to Maddison Elliott at Mining.com.au
Images: Victory Metals
