Terra Metals Higher On Raising A$6 Million via placement

Terra Metals Ltd (ASX:TM1) has secured firm commitments to raise A$6 million from institutional and sophisticated investors at an issue price of A$0.06 per share.

The placement comes hot on the heels of the Dante Reefs discovery, which has the potential to host a large sulphide deposit containing copper, gold, PGEs, vanadium and titanium – first of its kind in Australia.

At the centre of the placement is Tribeca, the company’s largest shareholder committing A$941,000.

In addition, Terra has also received strong director support with commitments of A$174,000 on the cards.

Meanwhile, at the bourse, the market welcomed the news with shares trading as high as A$0.092, up 26% from the previous close.

TM1 share price chart

Use of funds

Notably, the proceeds from the placement will be used to accelerate the exploration and development of the company’s Dante Project in Western Australia and for general corporate purposes, including:

  • infill and extensional drilling at the Dante Reefs;
  • metallurgical and mineralogical analysis at the Dante Reefs;
  • geophysical surveys across the broader Dante Project; and
  • new discovery drilling of magmatic copper sulphide targets at the Dante Project.

” The Dante Reefs are mapped to outcrop for at least 42km of strike across the Dante Project, with most remaining undrilled”, said CEO and managing director Thomas Line

“Proceeds from the Placement will now allow us to accelerate our plans to grow and develop this exciting discovery,”

Placement highlights

The placement comprised 100,000,000 new ordinary shares with an issue price of A$0.06 per share

Adding to the mix, the placement has also received strong support from several new resource-focused institutions.

“We are very pleased at the strong support received for the Placement, including from several new resource-focused institutions,” added Line

Furthermore, Evolution Capital acted as lead manager for the placement.

 

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