Future Metals NL (ASX:FME, AIM:FME) has moved to double the ceiling of a share purchase plan (SPP) intended to raise A$500,000 from existing shareholders after receiving heavily oversubscribed offers.
FME’s board has opted to exercise its discretion under the prospectus to increase the SPP to raise up to A$1 million and following the strong response will still need to scale back the applications.
The applications will be scaled on a pro-rata basis to A$1 million, with the balance of funds returned to applicants as soon as possible.
Advancing exploration at Panton
With the completion of this SPP, Future Metals will have raised a total of A$6 million under this latest capital raising effort.
The company intends to use the funds from its A$5 million placement and A$1 million SPP to action exploration activities at the Panton Nickel-Copper-Platinum Group Element (PGE) Project.
FME will assess the sulphide potential of the tenure, progress a scoping study based on the existing PGE resource and advance ongoing metallurgical test-work. Funds will also support general working capital.
Read: Future Metals to raise $5M for exploration at Panton and Scoping Study progression
Future Metals will now focus on completing the issue of SPP shares and free attaching options to shareholders, with normal trading of said shares to begin on September 15, 2022.