Metallica Minerals (ASX:MLM) raises $3.04 million to progress Cape Flattery silica sands

• Metallica Minerals (MLM) raises $3.04 million to continue funding its silica sand project in the Cape Flattery dune field on the north-east coast of Queensland
• The share price of 3.1 cents represents a 7 per cent premium to the closing price of 2.9 cents on 11 February last year
• The placement was completed with support from new institutional investor Deutsche Balaton Group and MLM’s largest pre-placement shareholders Ilwella and Dostal Group, which will receive one option for every two new shares at six cents strike price
• The placement leaves MLM with over $7 million to progress its program
• Shares in Metallica were trading up 6.9 per cent trading at 3.1 cents

Metallica Minerals (MLM) has raised $3.04 million to continue funding its silica sand project in the Cape Flattery dune field on the north-east coast of Queensland.

The share price of 3.1 cents represented a 7 per cent premium to the closing price of 2.9 cents on 11 February last year.

The placement was completed with support from new institutional investor Deutsche Balaton Group who purchased shares to the value of $2 million, as well as MLM’s largest pre-placement shareholders Ilwella and Dostal Group.

In addition to purchase of the shares, the three placement participants will receive one option for every two new shares at six cents strike price ranking pari passu with the existing options issued on April last year, with an expiry date of 25 March 2024.

The placement leaves Metallica with over $7 million to progress its program of activity for the year.

Executive Chairman Theo Psaros said the support Metallica has secured is a testament to the delivery of the company’s strategy.

“This placement has enabled us to strengthen our cash reserves ahead of a big program of activity this year and, importantly, the recognition from leading investors provides significant external validation for Metallica’s Cape Flattery silica sand project,” he said.

The program consists of completing environmental studies and applications to advance the project’s development, finalising the Cape Flattery silica sand pre-feasibility study, commencing the project’s definitive feasibility study in the second quarter, and implementing a more formal silica sand marketing program to procure potential offtake partners for the project.

Shares in Metallica were trading up 6.9 per cent at 3.1 cents.