PriceSensitive

Australian Strategic Materials (ASX:ASM) flags approaching capital raise

The Market Online Deal Room
ASX:ASM      MCAP $160.8M
24 March 2021 14:20 (AEDT)

Australian Strategic Metal’s (ASM) shares have entered a trading halt as the company lays plans for a material capital raise.

The materials “miner to producer” requested an immediate halt ahead of a formal announcement regarding the raise, which is expected in the next two trading days or earlier. At which time, ASM is set to resume trading.

There has been no clear indication as to how much Australian Strategic is looking to bank via the fund raising activities, what the proceeds will be used for or what type of investors will including in the offering.

A quick glance at its most recent operational activities reveals the company has plans for a proposed metals plant in Korea’s Ochang foreign investment zone.

ASM has signed a memorandum of understanding with the Chungcheongbuk-do Provincial Government and the Cheongju-si City Government to cover the supply of utilities, administrative licenses and permit procedures.

In its most recent half-yearly, the company reported a cash and equivalents balance of $12.4 million for the period ended December 31, 2020.

Prior to the trading halt, Australian Strategic Materials last changed hands at $4.99 per share.

Related News