Energy Transition Minerals Ltd (ASX:ETM) Secures A$9.35M Placement
Successful Capital Raising
Energy Transition Minerals Ltd (ASX:ETM) successfully secured binding commitments for approximately A$9.35 million through an institutional share placement. The placement involved the issuance of around 137.5 million new shares at A$0.068 each and was met with strong support from both local and international investors.
Funding Utilisation
The proceeds from this placement will be allocated to the ongoing development of the Kvanefjeld Rare Earths Project in Greenland. Key areas of focus include expanding operations, updating resource parameters, and reviewing acquisition opportunities. The company anticipates strengthened cash reserves of A$20 million following the placement.
Executive Insight
Daniel Mamadou-Blanco, Managing Director and CEO of Energy Transition Minerals, expressed optimism about the response to the capital raising. He highlighted the Kvanefjeld Project’s significance to Greenland’s economic future and its potential impact on sustainable energy initiatives globally. “The proceeds of this capital raising will further strengthen our balance sheet, allowing us to continue to progress Kvanefjeld,” he stated.
Placement Details and Future Steps
The single tranche placement will utilise the company’s available placement capacity under ASX Listing Rule 7.1. Participants will receive one free-attaching option for every two new shares issued, exercisable at A$0.12 over the next 18 months. The indicative timetable for this placement includes the lifting of the trading halt on 21 January 2025 and the commencement of trading new shares on 28 January 2025.
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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