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MinRex Resources (ASX:MRR) $13.5m placement cornerstoned by strategic investors

ASX News, Mining
ASX:MRR      MCAP $13.01M
21 April 2022 11:50 (AEST)

Source: MinRex Resources

MinRex Resources (MRR) has received firm commitments to raise $13.5 million to further accelerate its Pilbara lithium-tin-tantalum exploration strategy and other projects in WA and NSW.

The placement was heavily oversubscribed and strongly supported by investors, including a $6.8 million cornerstone investment received from a strategic group of investors who are executives of Chinese and Australian mining groups.

The group includes some persons who were early-seed investors in Global Lithium (ASX:GL1).

MinRex offered shares at 6.2 cents each, marking a 16.2 per cent discount to the last closing price of 7.4 cents, and included free attaching options.

The options will be on the basis of one option for every two shares subscribed for, which will be subject to shareholder approval.

Funds raised from the placement will be applied to exploration on MinRex’s Pilbara lithium projects, continuation of exploration on existing WA and NSW gold, precious and base metal projects and for general working capital requirements.

Within the next 12 months, MinRex is planning to undertake 25,000 metres of drilling across its Pilbara lithium projects.

“This capital raising marks another important milestone in our journey to becoming the next lithium producer in the Pilbara,” Managing Director George Karageorge said.

“The past six months has seen us complete an outstanding acquisition of highly prospective Lithium-Tin-Tantalum Projects, with the identification of extensive spodumene and lepidolite from surface pegmatites.”

“The successful completion of the placement will allow MinRex to increase our exploration momentum during this year.”

“We look forward to furthering our relationships with our cornerstone investors given their experience in the exploration, development, refining and processing of precious and battery metals in Australia,” he concluded.

On the market, MinRex shares were up 1.35 per cent and trading at 7.5 cents per share at 11:18 pm AEST.

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