Mineral explorer Voltaic Strategic Resources (ASX:VSR) has tapped investors for $7.2 million to accelerate exploration at the Ti Tree Lithium and Paddys Well Rare Earth Element (REE) projects in Western Australia.
The company reports the first tranche of the 2-tranche placement will see about 62.2 million shares issued at $0.05 to raise about $3.1 million, while the second tranche will comprise the issue of 82 million shares at the same price to raise $4.1 million, pending shareholder approval.
Voltaic says the issue price represents a 9.8% discount to its 5-day volume weighted average price (VWAP) of $0.0554 up to the close of trading on 9 May 2023. Subject to shareholder approval, each share issued under the placement will entitle participants to 1 free option for every 2 shares issued at an exercise price of $0.08 expiring on 30 June 2026.
RM Capital acted as the lead manager to the placement and will receive a lead management fee of 1% in addition to a placement fee of 5%, plus an allocation of 10 million options under the same terms as the placement.
Voltaic also reports all directors have committed to increasing their shareholding in the second tranche, with CEO Michael Walshe and Exploration Manager Claudio Sheriff-Zegers subscribing for a combined $135,000 worth of shares.
Commenting on the placement, Voltaic Strategic Resources CEO Michael Walshe says: “We are delighted with the extremely strong level of demand for the placement, which has validated the work that has been carried out on our key Gascoyne assets to date.
“With this transformational placement, Voltaic is now well-funded to drill a number of key lithium and rare earth targets across both our Ti Tree and Paddys Well projects”
Proceeds from the placement will enable us to systematically and rapidly advance exploration programs at our flagship project and upscale our operational activities. With this transformational placement, Voltaic is now well-funded to drill a number of key lithium and rare earth targets across both our Ti Tree and Paddys Well projects.”
Voltaic reports the tranche 1 shares will be issued on or around 19 May 2023, while tranche 2 shares are expected to be issued at the end of June 2023.
Voltaic Strategic Resources is an Australian battery metals explorer with projects in Western Australia, and Nevada in the US.
Images: Voltaic Strategic Resources Ltd
