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Technology Metals (ASX:TMT) to launch a $2.1M capital raise

Mining
ASX:tmt
31 January 2020 17:55 (AEST)

Mining company Technology Metals Australia (TMT) has received commitments to raise $2.1 million through a placement of fully paid ordinary shares.

The commitments are for up to 19,445,833 shares, at an issue price of 11 cents per share.

The placement is equal to the last closing price of Technology’s shares on January 28, and is a 15 percent discount to the 30 day volume weighted average price.

The company says the commitments were made by both new and existing investors, and are happily welcoming domestic and international investors to the register.

The strategic investors have significant experience in investments and operations within the rapidly emerging battery metals markets. They also say the investors will help strengthen the company’s relationships in Asia.

The intention of the capital raise is to help the development of Technology’s Gabanintha Vanadium Project, near Meekatharra, as well as general working capital.

The company is currently in offtake and financing discussions for the project, following a definitive feasibility study.

In addition, the board intends to purchase up to 550,000 of the fully paid ordinary shares, at a price of $60,500, subject to shareholder approval.

Technology is up a healthy 18.2 percent, trading at 13 cents each at 3:25 pm AEDT.

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