Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF) is readying for the next chapter at its Ta Khoa Nickel-Copper-Platinum Group Element (PGE) Project in Vietnam with a A$60 million capital raise.
The battery metals stock will field A$55 million from a heavily oversubscribed placement and is out to raise a further A$5 million from a share purchase plan.
This fresh cash injection will get Blackstone ready for the next stage of work at its flagship battery metals hub, namely commissioning a phase two pilot plant, completing feasibility studies and further exploration in the Ta Khoa district.
Some of the world’s leading investment firms — including Shaw & Partners Limited, Evolution Capital and PAC Partners — beat the drum for the $60 million raise as joint lead managers.
“Rare growth opportunity”
Speaking to the capital raise, Blackstone managing director Scott Williamson said: “The company is delighted to have attracted high quality Australian and International investment managers to its register.
“Blackstone’s vertically integrated nickel sulphide project in Vietnam is a rare growth opportunity that received overwhelming interest during the book-building process.
“In the coming months, the company will deliver updated and maiden resources for its key development targets at Ta Khoa.
“These targets are the basis of the soon to be completed pre-feasibility study for the Upstream Business Unit.
Capital raising
As part of the latest capital raise, investors across Australia and around the world jumped at the chance to increase their holdings in BSX, with nearly 95 million shares set for issue under the placement.
This will take place over two tranches: the first will issue slightly more than 38 million shares to raise A$22.1 million, while the second — which requires shareholder approval — will distribute the remaining 56.7 million shares for A$32.9 million.
Subscribers picked up their new parcels at A$0.58 per share — a 5.1% discount to the 10-day volume-weighted average price of BSX shares before October 27.
Moving ahead, eligible shareholders can also get in on the action via a A$5 million share purchase plan at the same price as the placement.
Blackstone will issue up to 8.62 million shares under the offer, which closes on November 19.
The results should be announced on November 23, while shares under the plan will hit investors’ pockets on November 26.
If approved, tranche two shares from the placement will be issued just before Christmas.
Next chapter at Ta Khoa
Ultimately, the fresh capital brings Blackstone a step closer to building its battery metals hub in Vietnam’s Ta Khoa district.
Williamson continued: “The successful completion of the capital raising provides shareholders with the highest leverage and exposure to future value-accretive events.
“The company is well capitalised to independently de-risk the Ta Khoa Project and thereby organically elevate its status as a supplier of choice into lithium-ion battery and electric vehicle supply chains.
“Blackstone is cognisant of its first mover advantage and the current injection of capital catalyses the company’s development pathway which in turn will ensure strategic competitiveness.
“Blackstone is on an accelerated pathway towards completing feasibility studies, progressing pilot plant testing and advancing partnership negotiations.”