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ASM to raise A$34m

2nd November 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Critical minerals developer Australian Strategic Metals (ASM) has announced plans to raise up to A$34-million to accelerate activities at the Korean metals plant, and to progress its Dubbo polymetallic project in New South Wales.

The ASX-listed company has received firm commitments from institutional investors for the placement of 17.34-million shares, at a price of A$1.73 each, raising an initial A$30-million.

The issue price represented a 12.4% discount to ASM’s last closing price and a 16.4% discount to the company’s ten-day volume weighted average share price.

More than 15-million of the shares issued will be done under ASM’s existing placement capacity with only 2.34-million shares, which will be issued to directors, subject to shareholder approval.

In addition to the share placement, ASM will also undertake a share purchase plan (SPP) aimed at raising a further A$4-million. Eligible shareholders will be allowed to subscribe for up to A$30 000 of additional shares in the company, also at a price of A$1.73 a share.

The SPP will open on November 9 and close on November 18.

Funds raised will be used to secure feedstock inventory at the Korean metals plant to support metal production, accelerate offtake marketing and strategic partner discussions in relation to funding for the Dubbo project, and to fund early works on road, bridge and rail infrastructure for site access.

“With our Korean metals plant producing commercial quality metals and our Dubbo project ready for development, ASM is well positioned to secure project financing and execute our mine to metals strategy,” said CEO Rowena Smith.

“The commercial environment for rare earths, critical minerals and high-tech metals goes from strength to strength, and with Dubbo’s strong business case, we are looking forward to the opportunity to be a valuable contributor to the global energy transition.”

Edited by Creamer Media Reporter

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