GreenTech Metals (ASX: GRE) has secured firm commitments for $2.3 million via a placement to institutional and sophisticated investors with the funds to be allocated towards a staged drilling program at the company’s Whundo project in WA.
The funds will be raised via the placement of 28,750,000 million new, fully paid ordinary shares at an issue price of $0.08 per share.
Following the appointment of experienced mining executive Julian Hanna as technical advisor, GreenTech has ramped up its copper-zinc-gold hunt at the promising Whundo project in WA’s Pilbara region.
A new drilling program is set to be to be released next week, with drilling expected to kick off in December.
GreenTech is pleased to have received strong support for the placement, including from existing major shareholders. Combined funds raised from the placement, the drill-for-equity agreement and the EIS grant will be used to progress exploration at the rapidly growing Whundo Copper project. GreenTech Metals’ executive director, Tom Reddicliffe
The placement will be undertaken in two tranches, with 10,000,000 shares allocated in the first tranche using the company’s existing placement capacity under Listing Rule 7.1. The company says the remaining 18,750,000 shares will be issued in the second tranche upon shareholder approval at an extraordinary general meeting (EGM), on a date yet to be confirmed by the company.
CPS Capital Group, which acted as lead manager to the placement, will receive 15,000,000 options with an exercise price of 12 cents per share with an expiry date three years after issue of the options, subject to shareholder approval at the EGM.
GreenTech will look towards an ASX application to list the options with the proceeds to be applied predominantly to additional exploration at GreenTech’s 100 per cent owned Whundo ground.
The funds will also be applied to minor works at the company’s 100 per cent-owned Ruth Well project and its Osborne JV lithium pegmatite projects in which it holds a 51 per cent stake, along with other company projects and for general working capital.
The company has received an additional $140,000 courtesy of the WA Government’s exploration incentive scheme, which it plans to put towards further development at its Shelby target, in the centre of the north-south Whundo trend.
GreenTech has also entered into a drill-for-equity agreement with leading drilling services company Topdrill, under which the company will issue Topdrill fully paid ordinary shares in lieu of a part cash payment for drilling services rendered.
The maximum number of contractor shares which GreenTech may issue is up to 35 per cent of the total invoice value for direct drilling services, up to a maximum value of $1,000,000.
Together, the successful completion of all three funding streams suggest the company has strong investor backing in its continued development of the Whundo project, which is worth keeping an eye on.
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