Asian Battery Metals PLC has secured firm commitments for a heavily oversubscribed placement, to raise A$3.969 million before costs.
The company will issue approximately 88.2 million fully paid Chess Depository Interests (CDIs) at 4.5 cents per CDI, reflecting strong demand from existing and new investors, including institutional participants.
This money will fund the upcoming 2025 exploration program and it is expected that the funds raised will be sufficient, along with company’s current available cash, to fund all currently planned activities and working capital in 2025.
“This capital raising will support a continuation of the company’s excellent momentum with its exploration and evaluation program. I would like to welcome our new security holders and thank existing holders for strongly supporting the raising,” AZ9 managing director Gan-Ochir Zunduisuren said.
Funding the 2025 program
The proceeds will fully fund an expanded 2025 drilling program at the Oval copper-nickel and Copper Range copper-gold projects. This includes expansion of Phase 3 drilling, evaluation and exploration at the Oval Project and into the Copper Ridge Project and inclusion of Copper Ridge into the Phase 3 drilling, evaluation and exploration program.
Last week AZ9 outlined priority drilling targets at the Oval Copper-Nickel Project in southwest Mongolia in preparation for its third-phase exploration program, set to start in March.
The Phase 3 program will involve up to 1,500 metres of diamond drilling, downhole electromagnetic (DHEM) surveys in the newly drilled holes and regional geophysical surveys scheduled between April and June 2025.
Drilling will primarily target untested or reinterpreted DHEM conductive plates identified during Phase 2 exploration.
Additionally, the program will investigate a high-gravity inversion anomaly extending up to 550 metres beneath the southern section of the Oval gabbroic intrusion. Further exploration will focus on six step-out drill targets within the detailed exploration area.
Read more: Asian Battery Metals identifies priority drilling areas at Oval ahead of Phase 3 exploration
Funds raised through the current placement will support further evaluation and exploration activities across AZ9’s broader project portfolio while also covering placement costs and general working capital requirements.
About the placement
Under the placement, the company will issue approximately 88.2 million Chess Depository Interests (CDIs) at A$0.045 per new security, raising up to A$3.969 million before costs.
The offer price represents:
- An 8% discount to the last closing price of A$0.049 per share on February 19, 2025, the last trading day before this announcement; and
- A 12% discount to the five-day volume-weighted average price (VWAP) of A$0.051.
Settlement is expected on March 3, 2025, with allotment scheduled for March 4, 2025.
The new securities will rank equally with the company’s existing fully paid CDIs.