29Metals Limited (ASX:29M) Launches $180 Million Entitlement Offer

29Metals Limited (ASX:29M) has announced the launch of a retail component of its fully underwritten, non-renounceable entitlement offer aimed at raising approximately $36.2 million. This is part of a broader effort to raise about $180 million through the issuance of new fully paid ordinary shares as part of the company’s strategy to enhance its balance sheet and fund operations.

Offer Details

Eligible retail shareholders may subscribe for 1 new share for every 1.43 existing shares held at an offer price of $0.27 per new share. This offer price reflects a discount of 16% to the theoretical ex-rights price of $0.32 and a 27% discount to the last closing price of $0.37 prior to the announcement. The retail entitlement offer is set to close on Thursday, 19 December 2024, at 5:00 PM (Sydney time).

Use of Proceeds

The capital raised from this entitlement offer will provide significant working capital and fully fund the development of the Gossan Valley project at the Golden Grove mine to first ore. CEO James Palmer highlighted that the outcome of this capital initiative will also support debt reduction efforts and ongoing operational needs.

Institutional Offer Success

The institutional component of the entitlement offer has already raised approximately $96.3 million, with strong support from existing shareholders and new investors. The results have demonstrated a keen interest in the company’s strategic direction and operational capabilities in the market.

Further Information

A retail offer booklet detailing the terms of the retail entitlement offer will be available for eligible retail shareholders starting from 10 December 2024. Shareholders are advised to carefully review this booklet before deciding to participate in the offer.

Owen Hegarty, Chair of 29Metals, expressed gratitude for the support received from current and new investors and encouraged eligible retail shareholders to consider participating once the offer opens.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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