Technology Metals (ASX:TMT) Welcomes $13.5M Investment For Vanadium Project
Technology Metals Australia (TMT) is getting a $20 million cash boost through a two-tranche placement.
The company signed a binding subscription agreement with Resource Capital Fund (RCF) VII who has committed to invest $13.5 million at 37.5 cents per share. In return, RCF VII will have an 18 per cent stake in TMT.
Established in 1998, RCF VII has supported 203 mining companies with projects in 51 countries and across 32 commodities.
TMT Managing Director, Ian Prentice, was pleased to have secured the support from a “highly regarded mining alternative investment firm”.
“The investment from RCF VII further endorses the high-quality nature of our vanadium assets and provides us with a platform to focus on the integration of the Yarrabubba deposit into the development of the high quality Gabanintha Vanadium Project.”
In addition, the materials stock received commitments from strategic and institutional investors to raise another $6.5 million, also at 37.5 cents per share.
The issue price represents an 11.9 per cent discount to the 15-day volume-weighted average price and a 6.3 per cent discount to TMT’s last closing price of 40 cents.
Under the first tranche, which is raising around $13.6 million, 36.4 million shares will be issued. These shares are expected to settle on October 4.
The second tranche will raise around $6.4 million through the issue of 17 million shares. This tranche is subject to shareholder approval which will be sought in November.
Specifically, the money will allow TMT to integrate the Yarrabubba project into an updated definitive feasibility study (DFS) for the Gabanintha Project. It will also support front-end engineering design studies and the development of an implementation model once the updated DFS is complete.
Technology Metals hopes to achieve a final investment decision for Gabanintha in the second half of 2022.
Company shares were up 6.25 per cent to trade at 42.5 cents at 10:58 am AEST.
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