Western Australian explorer WA1 Resources (ASX:WA1) has launched a $15 million share placement to advance exploration and development work at its flagship West Arunta Project.
Under the placement, WA1 will issue roughly 3 million new shares at $5 per share to private investors in 2 tranches. This price represents a 5% discount to the company’s 10-day volume-weighted average price leading up to the placement.
WA1 says the placement has been strongly supported by an offshore fund and existing domestic institutional shareholders.
The company, which has a $282.1 million market capitalisation, plans to use the funding boost to support exploration work and development studies at West Arunta, which lies 700km west of Alice Springs and 400km south of Halls Creeks.
Since its maiden exploration program at West Arunta in 2022, WA1 has discovered 2 mineralised carbonatites in the area — P2 and Luni — that contain elevated levels of niobium and rare earth elements (REE).
Speaking on the capital raise, WA1 Managing Director Paul Savich says: “We continue to have 2 drill rigs operating at Luni which are completing ongoing infill and step-out drilling in support of the maiden Mineral Resource Estimate planned for release in the first half of 2024. Development activities are also gathering momentum, with initial sighter testwork ongoing before upcoming metallurgical programs commence.
Our team has also continued to grow to support a number of development activities in line with our long-term, structured approach to fast-tracking project development aspects, and this additional funding enhances our ability to do so.
“Our team has also continued to grow to support a number of development activities in line with our long-term, structured approach to fast-tracking project development aspects, and this additional funding enhances our ability to do so“
Under the first tranche of the placement, WA1 will issue roughly 2.6 million shares to raise $12.8 million.
The company will need to seek shareholder approval to complete the second tranche, under which it will issue the remaining 400,000 shares to raise $2.2 million. Shareholder approval will be sought at a general meeting slated for October 2023.
MST Financial Services and Canaccord Genuity acted as joint lead managers to the placement.
Alongside West Arunta, WA1 owns 2 other Western Australian projects: Madura, protective for iron oxide copper-gold (IOCG) mineralisation, and Hidden Valley, prospective for mafic-ultramafic intrusion-hosted nickel-copper-platinum group element (PGE) deposits.
Write to Joshua Smith at Mining.com.au
Images: WA1 Resources
