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- Australian Strategic Materials (ASM) is looking to raise up to $106 million to continue advancing its Korean Metals Plant and Dubbo Project in NSW
- The company has received firm commitments to raise $65 million through a placement at $4.80 per share
- ASM will also launch a one-for-14 entitlement offer to raise up to $41 million
- The combined proceeds will fund the final stage of engineering and construction of the proposed plant in Korea, further engineering work for the rare earths project as well as for corporate costs and working capital purposes
- Shares have risen 2.2 per cent and been trading at $5.20
Australian Strategic Materials (ASM) is looking to raise up to $106 million to continue advancing its Korean Metals Plant and Dubbo Project in NSW.
The company has received firm commitments from sophisticated, professional and institutional investors to raise $65 million through a placement at $4.80 per share.
ASM will also launch a one-for-14 entitlement offer at the same issue price to raise up to $41 million. The offer price represents a 10 per cent discount to the company’s 10-day volume-weighted average price.
Managing Director David Woodall said the company was delighted to complete the placement, including to new international and Australian institutional investors.
“The funds raised significantly bolster our balance sheet, placing the Company in a strong position as we progress key workstreams which include development of the proposed Korean Metals Plant and advancing key FEED workstreams on the Dubbo Project in New South Wales.”
“Importantly, we continue to advance our strategy for sustainable growth, with a primary focus on developing ASM into a globally relevant, independent and integrated metals producer by 2022.”
The record date for the entitlement offer is Wednesdday March 31, 2021.
Shares have risen 2.2 per cent and been trading at $5.20 at 11:38 pm AEDT.
