PERTH (miningweekly.com) – ASX-listed junior Podium Minerals will raise A$6.6-million through a share placement and a non-renounceable entitlement offer.

The company will raise an initial A$2-million in a share placement to new and existing sophisticated investors, priced at 22c a share. Some 9.1-million shares will be placed under the company’s existing placement capacity.

Following the placement, Podium will undertake a 1-for-15 non-renounceable offer, also at an issue price of 22c a share, to raise a further A$4.6-million.

The offer price of 22c a share represents a 20% discount to the 10-day volume weighted average share price of Podium’s shares, and implied a market capitalisation of A$87.5-million for the company.

“We are thankful for the support of existing shareholders, and we welcome several new shareholders to the company with this recent capital raise. The Podium team has been diligently progressing the necessary steps required to realise the world-class potential of the Parks Reefs project and momentum is building across several workstreams,” said MD and CEO Sam Rodda.

“South African and Russian platinum group metals (PGMs) supply represents a significant component of the global PGMs market. Producers in these regions are facing challenges in maintaining and sustaining PGMs production. In South Africa the impact of deeper mines, declining grades, power supply inconsistency and labour uncertainty are placing pressure on production from aging processing plants. In Russia, increasing sanctions are creating uncertainty and decreasing availability of Russia’s PGMs supply. We believe the location of Parks Reef in a mining-friendly jurisdiction in Western Australia offers the opportunity to develop the first PGMs mine in Australia and provide a sustainable and reliable new source of PGMs supply to global customers.”

Rodda said that in addition to global PGMs supply uncertainty, the demand outlook for PGMs looks strong owing to their importance as a catalyst in the development of hydrogen energy.

“The rapid shift underway towards a decarbonized economy is driving investment in proposed green hydrogen production facilities in Western Australia and the location of Parks Reef may yet prove to be highly advantageous to these facilities.

“The funds raised from this placement and entitlement offer will allow the company to continue the momentum from the last six months of successful progress. Continuing to understand our high-grade zones in the next resource model as well as adding significant ounces will help inform and support future phases of drilling as we look to grow our 5E PGMs reef at depth and plan tight-space infill drilling to build and deliver an upgrade in our resource and allow geological confidence in previously identified high-grade zones.”