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- Metals Australia (MLS) receives a letter of firm commitments from Peak Asset Management to undertake a $1.5 million placement
- To raise the funds, more than one billion fully paid ordinary shares will be issued priced at 0.15 cents each
- Subject to shareholder approval, each share will receive an option, exercisable at 0.3 cents with expiry on December 31, 2023
- Metals Australia will use the money to fund the exploration of a potentially major, high-grade, lithium-tantalum pegmatite field at the Manindi Project
- Shares in Metals Australia have been trading steady at 0.2 cents since June 30
Metals Australia (MLS) has received a letter of firm commitments from Peak Asset Management to undertake a $1.5 million placement.
The company entered a trading halt on September 21 but did not disclose how much it intended to raise or what it would use the funds for.
To raise the funds, a total of 1,011,369,333 fully-paid ordinary shares will be issued priced at 0.15 cents each.
Subject to shareholder approval, each share will receive an option, exercisable at 0.3 cents with expiry on December 31, 2023.
Metals Australia will use the money to fund the exploration of a potentially major, high-grade, lithium-tantalum (LCT) pegmatite field at the Manindi Project.
Located in the Murchison District of Western Australia, the Manindi Project consists of three granted mining leases.
Initial surface mapping at the project identified at least three mineralised pegmatite dykes with strike lengths over 300 metres and widths of up to 25 metres to 30 metres.
Additionally, sampling has returned up to 2.84 per cent lithium oxide, 296 parts per million (ppm) tantalum and up to 746ppm caesium.
Director Gino D’Anna commented on the placement.
“The company has raised $1.5 million to fund immediate further sampling of the numerous pegmatite dykes within this extensive LCT pegmatite field as well as drilling to extend and define the pegmatites that have already produced significant high-grade lithium-tantalum intersections,” Mr D’Anna said.
Shares in Metals Australia have been trading steady at 0.2 cents since June 30. The company has an $8.45 million market cap.
