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- SI6 Metals (SI6) has raised $2 million through a placement to advance exploration across its Australian and African assets
- Shares were issued at 1.7 cents each, representing a 7 per cent premium to the 20-day volume-weighted average price
- The strong support for the placement and the early exercise of options is a mark of confidence in SI6 as it makes strides across its portfolio
- The funds raised will be used for drilling at SI6’s Botswana nickel-copper-PGE and copper-silver holdings, as well as the Monument Gold Project in WA
- With over $2 million in the bank, SI6 looks well set to continue exploration across its portfolio
- SI6 Metals is up 13.64 per cent and trading at 2.5 cents
SI6 Metals (SI6) has raised $2 million through a placement to advance exploration across its Australian and African assets.
The raise
Shares were issued at 1.7 cents each, representing a 7 per cent premium to the 20-day volume-weighted average price.
The majority of the placement shares were issued to current shareholders including sophisticated and professional investors.
A number of shareholders, including company directors, have also indicated their intentions to convert a number of options exercisable at 1.5 cents and 0.8 cents to further bolster the balance books.
The strong support for the placement and the early exercise of options is a mark of confidence in SI6 as it makes strides across its portfolio.
The spend
The money raised will be used for exploration across the company’s African and Australian assets.
SI6 has a plan to focus on projects containing “battery or new world” metals to capitalise on the increasing global demand in the electric vehicle and renewable energy sectors.
The company’s Botswana holdings certainly fit the mould for that strategic focus — being prospective for nickel, copper, cobalt, silver and platinum group elements (PGEs).
Diamond drilling is underway at the Maibele North nickel-copper-cobalt-PGE project, targeting deep sulphides related to ultramafic intrusions.
Early indications show some similarity to the style of mineralisation found at Chalice Gold Mines’ (CHN) Julimar discovery.
The company is also progressing gradient-array induced polarisation (GAIP) geophysical surveying at the Airstrip and Dibete copper-silver prospects.
Once the survey is complete and data is collated, SI6 will begin a reverse circulation drilling program to test any targets generated from the survey.
The company is aiming to discover the deep feeder source of near-surface copper and silver mineralisation at the prospects.
SI6 is also investigating potential expansions to its Botswana portfolio.
The company has also entered an option agreement to purchase the Monument Gold Project near Laverton in WA.
SI6 has received approval for its program of works (POW) and will start drilling in the new year as part of its due diligence for the acquisition.
Company Chairman Patrick Holywell says the strong support for the placement shows the company and its shareholders are on the same page.
“With our ongoing drilling program at Botswana underway and our POW approved to commence drilling at the Monument Gold Project in WA, we are thrilled that some of our existing shareholders are participating in a capital raising which will provide funding to continue and expand on these programs,” Patrick said.
“We find ourselves in an enviable position with key projects in two geographical regions – a fantastic project in WA that we have just been given the green light to commence drilling at early in 2021 and at the same time as our drilling is continuing in Botswana.”
“We are witnessing continued commitment for exploration and mining in Botswana from companies including Sandfire Resources which only strengthens our belief that the country remains a highly prospective exploration jurisdiction,” he added.
With over $2 million in the bank, SI6 looks well set to continue exploration across its portfolio.
SI6 Metals is up 13.64 per cent to 2.5 cents at 12:46 pm AEDT.
