Join our daily newsletter At The Bell to receive exclusive market insights
- Trek Metals (TKM) reveals details of a $5.5 million capital raise to fast track its exploration programs in the Pilbara region of Western Australia
- Investors have supported an oversubscribed placement to raise $3.5 million through the issue of 30.4 million shares at 11.5 cents each
- Additionally, a share purchase plan will be undertaken on the same terms as the placement in the hope of raising an additional $2 million
- Trek says the funds will be used to accelerate its next phase of exploration, particularly at the Pincunah Project where it uncovered an emerging VMS base metal discovery
- Shares closed 11.1 per cent lower at 12 cents each
Trek Metals (TKM) has revealed details of a $5.5 million capital raise to fast track its exploration programs in the Pilbara region of Western Australia.
The company entered a trading halt on October 18, withholding the details of the raise. Today it said investors had shown support for an oversubscribed placement to raise $3.5 million through the issue of 30.4 million shares at 11.5 cents each.
The issue price is a 14.8 per cent discount to the company’s closing price on October 15.
Additionally, a share purchase plan will be undertaken on the same terms as the placement to raise an additional $2 million with eligible shareholders able to participate in the raise.
The company reserves the right to scale back applications and may consider taking over-subscriptions.
Trek said the funds would be used to accelerate its next phase of exploration, particularly at the Pincunah Project where it recently reported an emerging VMS base metal discovery at the Valley of the Gossans prospect.
In particular, the money will assist an expanded program of surface geochemistry along strike from the Valley of the Gossans which is currently underway, as well as helicopter-borne and down-hole EM surveys which are set to start soon and further drilling to be undertaken subject to drill rig availability.
CEO Derek Marshall said this had been a breakthrough year for Trek and the capital raise put the company in a strong position to accelerate its exploration program.
He said the work either underway or planned would ensure Trek had the “best possible chance of making a transformational discovery”.
“The next few weeks and months will be a very exciting time for our shareholders,” Mr Marshall said.
Shares closed 11.1 per cent lower at 12 cents each.
