Australian Strategic Materials Ltd (ASX:ASM) has taken its capital raising proceeds to almost $92 million after completing a pro-rata non-renounceable entitlement offer for proceeds of $26,919,096.
The company received applications from eligible shareholders for 5,608,145 new shares at A$4.80 per share, representing an approximate 65.23% take-up of the offer.
It follows a placement to institutional and sophisticated investors that was completed on April 6, 2021, raising $65 million.
“To cover important work”
Managing director David Woodall said: “This capital raising builds on the momentum that ASM has generated through the technical milestones achieved since listing in July last year.
"The funds raised will cover important work on both the KMP (Korean Metals Plant) and the Dubbo Project as ASM advances its critical metals strategy.”
Use of funds
Capital raising proceeds will be used to provide funding for ASM to focus on advancing key workstreams including engineering and development of the Korean Metals Plant.
Funds will also be used for a FEED study for the Dubbo Project while also providing additional working capital and funding of corporate costs.
ASM directors thank shareholders for their continued support of the company, and again welcome new shareholders who participated in the capital raising.
New shares are expected to be issued on Friday, April 23, 2021, with normal trading of the new shares expected to begin on Monday, April 26, 2021.
ASM maintains the flexibility to place shortfall under the entitlement offer but has made no decision to do so at this stage.