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- Metallica Minerals (MLM) is raising up to $9.6 million through a placement and entitlement offer
- The placement is set to raise $5.07 million and has received support from Sibelco Asia Pacific, as well as from existing shareholders Ilwella and SPARTA
- Metallica Minerals is also launching a fully underwritten entitlement offer, with Sibelco, Ilwella and SPARTA each committing to taking up their full entitlements under the offer
- Metallica will use the money to develop its Cape Flattery project in Queensland, with work to include an upcoming definitive feasibility study
- MLM shares ended Wednesday’s session at 3.5 cents
Metallica Minerals (MLM) is looking to raise up to $9.6 million through a placement and entitlement offer to develop its Cape Flattery project in Queensland.
The company is set to pocket $5.07 million through a fully underwritten placement to new and existing shareholders under which new shares were offered at 3.5 cents per share.
The placement received “significant” support from global silica sand specialist Sibelco Asia Pacific and continued support from existing MLM shareholders Ilwella and SPARTA.
In addition, Metallica Minerals has launched a fully underwritten non-renounceable pro rata entitlement offer to raise a further $4.5 million.
The company said Sibelco, SPARTA and Ilwella would each take up their full entitlements under the offer.
Metallica’s Executive Chair, Theo Psaros, said he was “delighted” existing shareholders showed their support and was pleased to receive support from new investors.
“This show of support represents a significant endorsement of Metallica’s ambitions to provide high-quality silica to global markets and sends a strong positive signal to potential future customers that Metallica is well positioned to progress the development of the Cape Flattery silica sand project,” Mr Psaros said.
Following the completion of the capital raise, the company will have roughly $12 million in available funds to progress its Cape Flattery project in Queensland.
Specific activities will include the completion of a definitive feasibility study, Traditional Landowner negotiations, and the progression of memorandum of understanding arrangements.
The company said the entitlement offer would close on December 16, with results to be announced on December 21.
MLM shares ended Wednesday’s session at 3.5 cents.
