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Pure Minerals (ASX:PM1) raises $4.4M for Tech project

Mining
ASX:PM1
21 September 2020 09:19 (AEST)
Pure Minerals (ASX:PM1) - Managing Director, John Downie

Source: Pure Minerals

Pure Minerals (PM1) has received firm commitments from sophisticated and institutional investors to raise $4.4 million.

The placement will be conducted in two tranches, the first will issue over 106 million shares, while the second tranche will result in the issuance of around 187 million shares, subject to shareholder approval at a general meeting next month.

Shares for the placement will be issued at 1.5 cents, representing a 19 per cent discount to the 15-day volume weighted average price.

Funds from the placement will advance the company’s pilot plant activities in Perth, allow bankable feasibility studies to be done and progress project approvals for the Townsville Energy Chemical Hub project (TECH).

The TECH project will process high grade nickel-cobalt laterite ore imported from New Caledonia to produce battery chemicals for the emerging electric vehicle sector.

Pure Minerals CEO Stephen Grocott said the placement was strongly supported.

“We continue to gain momentum with a number of potential off-takers for the TECH Project,” Stephen said.

“The funds raised in this placement enable us to undertake that work, but also to commence other essential work streams such as preparing for a bankable feasibility study and project approvals,” he said,

Pure Mineral shares closed 5 per cent lower, trading for 1.9 cents.

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