Future Metals NL (ASX:FME, AIM:FME) has received firm commitments to raise $5 million. The heavily oversubscribed placement was for 40 million new fully paid ordinary shares at a price of $0.125 per share. A share purchase plan to raise $500,000 will follow.
The placement has seen strong support from new Australian and international institutional and sophisticated investors and includes the issue of one free-listed attaching option for every three placement shares issued exercisable at a price of $0.10 per share and an expiry date of June 11, 2024.
“This fundraising enables the company to engage in a targeted exploration program to test Panton for significant Ni-Cu-PGE discoveries sitting outside of the current resource area while also ensuring that the company is fully funded to progress the scoping study on its large existing PGM-Ni resource,” managing director of Future Metals Jardee Kininmonth said.
“We appreciate the continued support from existing sophisticated and institutional investors and welcome several new investors to the register. We are pleased to announce a share purchase plan which will enable our valued retail shareholder base the opportunity to participate in the fundraising on the same price and terms as the placement.”
Use of funds
Monet raised will be used for:
- exploration activities to test Panton’s significant Ni-Cu-PGE sulphide potential;
- progress a scoping study based on the existing PGM resource;
- ongoing metallurgical test work; and
- general working capital.
Placement details
Future Metals has placed 40 million new fully paid ordinary shares to be issued at a price of $0.125 per share to raise a total of $5 million before expenses.
The issue price of $0.125 per share represents a discount of:
- 7.4% to FME’s last traded price on August 12, 2022;
- 5.9% to the 5-day VWAP; and
- 5.6% to the 30-day VWAP.
The new ordinary shares issued under the placement will rank equally with the existing ordinary shares on issue.
SPP details
In conjunction with the placement, Future Metals will be offering eligible shareholders the opportunity to participate in a SPP on the same terms as the placement to raise up to an additional $500,000 before expenses.
The SPP will be priced at $0.125 per new ordinary share and will also include one free attaching option for every three SPP shares issued, with the SPP options exercisable at price of $0.10 per share with an expiry date of June 11, 2024.
Eligible shareholders have the opportunity to acquire up to $30,000 worth of SPP shares with a one for three free-attaching SPP option without incurring brokerage or any other transaction costs.
The SPP is expected to close on or around September 9, 2022.
Indicative timetable
