Intercept Minerals (ASX:IZM) will be raising up to $490,450 to fund exploration, evaluate and potentially acquire new resources, assets and investments.
It controls base metals, uranium, bauxite and tungsten projects in the Northern Territory, and a tin project in Myanmar.
The funds will be raised via a $170,591 placement and $319,859 rights issue.
Intercept’s placement is to sophisticated and professional investors at $0.002, introducing new cornerstone shareholders with a track record in resources investment and providing it with new avenues for sourcing and funding new project opportunities.
The rights issue is a 1 for 2 offer at $0.0015, fully underwritten by DJ Carmichael.
Intercept holds a particularly interesting bauxite project off the coast of the Northern Territory on Melville Island, part of the Tiwi Islands.
The company has finalised a farm-in agreement with Rio Tinto (ASX: RIO) whereby Rio is to spend $5 million over 4 years to earn a 75% interest.
The farm-in agreement is subject to the negotiation of an access agreement with the Tiwi Land Council and the formal grant of the exploration licence.
Once these conditions are met, a market re-rating is on the cards for Intercept, as it's not often you see a sub-$1 million company in a significant exploration joint venture with a multi-billion dollar, multi-national mining conglomerate such as Rio Tinto.
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