iTech Minerals (ASX:ITM) to raise $4.5m for drilling programs

• iTech Minerals (ITM) receives firm commitments to raise $4.5 million via a share placement
• The money will be raised via the issue of 18 million new fully-paid ordinary shares to institutional and sophisticated investors at 25 cents
• iTech will also be undertaking a share purchase plan (SPP) to raise up to $2 million with eligible shareholders able to subscribe for up to $30,000 worth of shares
• The money from the placement and SPP will be used for exploration, resource drilling and metallurgy at iTech’s Sugarloaf, Lacroma Caralue Bluff and Kaolin prospects
• Shares in iTech are down 10.8 per cent and trading at 29 cents at 1:54 pm AEDT

iTech Minerals (ITM) has received firm commitments to raise $4.5 million via a share placement.

The money will be raised via the issue of 18 million new fully-paid ordinary shares to institutional and sophisticated investors at 25 cents.

This price represents a 23.1 per cent discount to iTech’s closing price of 32.5 cents on November 8 and an 18.2 per cent discount to the five-day volume-weighted average price of 30.6 cents.

Shares will be issued on November 17 and be allocated on November 18.

iTech will also be undertaking a share purchase plan (SPP) to raise up to $2 million with eligible shareholders able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.

ITM has the right to increase or decrease the size of the SPP and may scale back applications at its discretion.

The money from both the placement and SPP will be used for exploration, resource drilling and metallurgy at iTech’s Sugarloaf and Lacroma prospects, and undertake resource drilling at the Caralue Bluff rare earth element (REE) and Kaolin prospect.

“This placement and subsequent SPP fully funds iTech’s exploration and resource development plans for the company’s Campoona spherical graphite project,” Managing Director Mike Schwarz said.

“Lacroma and Sugarloaf drill targets stand out as having high potential to significantly add to iTech’s current graphite resources.

“It also allows for resource drilling at the Caralue Bluff REE and kaolin prospect and metallurgical development towards a viable flowsheet for both high purity kaolin and REE products from a single resource.”

Shares in iTech were down 10.8 per cent and trading at 29 cents at 1:54 pm AEDT.