Montem Resources Ltd (ASX:MR1) has secured firm commitments for a placement of about $1 million from institutional and sophisticated investors from the issue of 24.8 million shares at $0.04 per share.
The company also intends to make a non-renounceable entitlement offer to all shareholders at $0.04 per share to raise up to $1 million.
The final terms and timing of the entitlement offer are yet to be determined and will be subject to any regulatory relief and compliance.
Chair Mark Lochtenberg, managing director Peter Doyle, and chief commercial officer Bob Bell have committed to participate in the placement for $100,000 in total – subject to shareholder approval.
The TM-REX steering committee members also participated, with Ventoux Advisory (Will Bridge, committee chair) and Boost Energy Ventures (Andrew Keeping, committee member) to convert C$170,000 (A$185,000) of outstanding invoices to shares in Montem, as part of the placement.
TM-REX pumped hydro energy storage sell down
Montem will apply the funds raised in the placement and entitlement offer to a sell-down process for the pumped hydro energy storage (PHES) element of the TM-REX and for in-principle approval from the ASX for a re-compliance listing as well as working capital.
“We are pleased with the support for the placement, particularly as the company remains in a trading suspension,” Montem Resources managing director and CEO Peter Doyle said.
“We have an exciting opportunity in undertaking the partial sale of the TM-REX pumped hydro project that we believe has the potential to realise significant value for investors.”
“Although we remain suspended from quotation, the board is committed to meet the requirements of the ASX for recommencement of trading.
“We will work with the ASX to re-comply over the coming months.”
“I take this opportunity to thank existing shareholders for their continued support, and also thank key members of our steering committee for their ongoing commitment to the Tent Mountain PHES in converting funds owed to them by Montem for work done on the project, into equity in Montem.”