PVW Resources NL (ASX:PVW) has secured commitments from existing and new institutional and high net-worth investors to raise $9.5 million in a heavily oversubscribed placement to advance its Tanami REE Project in the Kimberley region of Western Australia.
There will be 23.75 million shares issued in the two-tranche placement at $0.40 per share.
Moving forward, PVW is fully funded to complete the 2022 exploration program at the Tanami Project with drilling expected to commence in the next month.
Placement summary
The new shares represent a discount of 16% to the closing price of shares on April 1, 2022, of $0.48 per share and a 25% discount to the 20-day VWAP of $0.52.
In Tranche 1, PVW will use its existing placement capacity under Listing Rules 7.1 and 7.1A and accordingly no prior shareholder approval is required in connection.
For Tranche 2, the company will seek shareholder approval at a meeting to be convened in May 2022.
CPS is acting as lead manager, broker and corporate advisor to the company.
Use of funds
The placement along with existing cash reserves allows PVW to be fully funded for the 2022 exploration programs with particular reference to the Tanami REE and Gold Project
Subsequently, the company is finalising preparation for the drilling program which is targeted to commence in the next month.
This program will initially comprise 10,000 metres of reverse circulation (RC) drilling along with 25,000 metres of aircore drilling targeting the 18 kilometres unconformity trend from Watts Rise to the Killi Killi East prospects.
Funds raised will also be used for capital items including exploration vehicles, portable XRFs, site transportable office and other general exploration equipment required.
The company will also evaluate the results (assays pending) from the King of The West project 30 kilometres north of Kalgoorlie and aims to undertake a follow-up drill program.
Watch: PVW Resources is fully funded to pursue rare earth drill program following $9.5 million placement
Rare Earths in spotlight
Rare earths are attracting attention within Australia and the US, with significant contributions of government funding to support the development of critical minerals projects in Australia including:
- Australian Government’s commitment of $2 billion to critical minerals projects.
- US Government’s agreement to fund Australian critical minerals projects.
- 2022 Federal Budget allocation of $400 million to seal the Tanami Road to the WA\/NT Border which is within 20 kilometres of the Tanami REE project.