Polymetals Resources Ltd has completed its Share Purchase Plan (SPP) raising A$423,500 to complement the A$35 million raised in February’s institutional placement.
The company will issue a total of 529,375 new fully paid ordinary shares at an issue price of A$0.80 per share.
The money will go to supporting Polymetals’ balance sheet as it transitions to production at the Endeavor silver-zinc mine and expands its exploration activities.
The newly issued shares are expected to be allocated on March 17, 2025 and start trading on the ASX on March 18, 2025.
These shares will rank equally with existing Polymetals shares from the date of issue.
Board and management participation in the SPP totalled A$295,000.
Use of funds
The money raised will assist the restart of the Endeavor zinc-silver mine. Proceeds from the equity raising will be allocated as follows:
- Balance sheet strengthening – A$15.5 million to support the company’s transition towards first silver and zinc production at Endeavor, expected in Q2 2025.
- Exploration expansion – A$10 million allocated across calendar years 2025 and 2026 to significantly increase near-mine exploration, including at the Carpark prospect, as well as broader regional exploration initiatives.
- Corporate and general purposes – A$7.8 million for corporate and working capital requirements.
- Placement costs – Approximately A$1.68 million in associated costs.
"As well as strengthening the Polymetals balance sheet, funds from this raising will allow us to significantly step up the company’s exploration activities and we look forward to updating the market on our exploration results,” Polymetals executive chairman Dave Sproule said last month.
“With this equity raising achieved, we believe the Polymetals team is very well-positioned to begin the next chapter in ‘Making Endeavor Great Again’ with the establishment of strong and sustainable cash flow and providing a significant and lasting contribution to the community of Cobar and the mining industry in New South Wales.”