Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) is targeting up to A$6.3 million in a capital raise designed to support the progression of its flagship Great White Project in South Australia.
The funding initiative consists of two components - a share placement and a pro-rata non-renounceable entitlement offer.
Firm commitments received
The company has secured firm commitments from sophisticated and institutional investors for the placement, raising around A$3.4 million before costs.
New shares were priced at A$0.012 per share, a 25% discount to the last closing price on August 15, 2024.
In addition to the placement, Andromeda will launch a one-for-13 pro-rata non-renounceable entitlement offer to eligible shareholders, aiming to raise up to A$2.9 million before costs.
Both the placement and entitlement offer shares will be issued with a free attaching option, exercisable at A$0.0175, expiring on September 30, 2027.
The company plans to apply for the quotation of these options on the ASX.
Funds raised will be allocated towards advanced plant design and engineering, product and market development and other activities required to secure project financing for the Great White Project.
Ready to move forward
Andromeda CEO and managing director Luke Anderson said: “With the securing of binding offtake agreements to support our expanded Stage 1A+ production we are now ready to move the Great White Project forward.
“The funds raised from this capital raising, including significant interest from new investors in the placement, will enable us to continue advanced plant design and engineering works, progress with product development and marketing activities, as well as those activities required to support the project financing process.
“Following this fundraising, Andromeda will be well placed to advance the project towards a final investment decision and production.”