WA1 Resources (ASX:WA1) has received firm commitments to raise $40 million via a placement to institutional, sophisticated, and professional investors.
The $638.72 million market capitalisation company deploy the funds raised towards drilling and exploration activities at its West Arunta Project in Western Australia. The activities include metallurgical testwork, process and project studies, and permitting activities.
Canaccord Genuity acted as sole lead manager, while privately held MST Financial Services and Bell Potter Securities acted as co-managers to the placement.
WA1 Managing Director Paul Savich says these additional funds support a continuation of ‘major’ de-risking and critical path activities for West Arunta.
“This work will progress alongside exploration and resource drilling, along with the estimation of an initial mineral resource for Luni in the June quarter of 2024.”
Under the placement, WA1 will issue 4 million new fully paid ordinary shares in WA1 at $10 per share, representing a 5.5% discount to the 30-day volume weighted average price (VWAP) and a 10.2% discount to the last traded price of WA1 shares.
The company notes that there are a ‘significant’ number of assay results from the 2023 drilling campaign still outstanding. WA1 expects to report these results this quarter, as they prepare to begin the 2024 field season.
WA1 Resources is a mineral explorer focused on its 3 assets operating within Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: WA1 Resources
