Green Critical Minerals' Capital Raise to Accelerate VHD Block Technology
GCM (GCM) Share Update November 2024 Sunday 10th
Green Critical Minerals Secures $2.48M for VHD Block Technology Expansion
Green Critical Minerals Ltd (ASX: GCM) has successfully raised $2.48 million through an oversubscribed capital placement to accelerate the commercialization of its VHD Block Technology and advance the McIntosh Graphite Project.
Instant Summary:
- Raised $2.48 million through an oversubscribed capital placement.
- Funds to commercialize VHD Block Technology at a new industrial facility in NSW.
- Development of McIntosh Graphite Project to create a mine-to-market supply chain.
- Pilot plant construction underway with key equipment identified.
- Placement shares issued at A$0.0065 per share, an 18.75% discount.
Overview of the Capital Raise
Green Critical Minerals Ltd (GCM) has announced a successful capital raise of A$2,479,819 through the placement of 381,510,660 fully paid ordinary shares at a price of A$0.0065 per share. This move was met with strong support from both new institutional investors and existing shareholders, reflecting confidence in GCM's strategic direction.
The funds will be pivotal in executing the commercialisation plan for GCM's innovative VHD Block Technology. This technology is set to be developed at the company's newly acquired industrial facility in New South Wales. The capital will also support the advancement of the McIntosh Graphite Project, which aims to establish a comprehensive mine-to-market supply chain.
Strategic Initiatives
With the raised funds, GCM plans to rapidly develop a pilot plant to produce VHD Blocks, which boast exceptional thermal properties. This development is crucial for the company to transition the technology to the revenue generation stage. Under the guidance of Professor Andrew Ruys, Head of Research and Development, internal studies are already comparing the thermal properties of VHD Blocks to target markets.
The McIntosh Project will undergo further development, including the completion of a pre-feasibility study. This project is expected to enhance the competitiveness of VHD Blocks by leveraging high-purity graphite properties.
Details of the Placement
The placement was executed at an 18.75% discount to GCM's last closing price of A$0.008 per share. The shares will be issued in a single tranche, utilizing GCM's existing placement capacity under Listing Rules 7.1 and 7.1A. Whairo Capital Pty Ltd acted as the Lead Manager for the placement, receiving a 6% fee on the funds raised and 20 million Broker Options.
The successful capital raise positions GCM to make significant strides in commercializing its VHD Block Technology. The funds will enable the company to build a pilot plant, which is a critical step towards revenue generation. This development could positively influence GCM's stock price as investors anticipate future growth and market expansion.
Investor Reaction:
Analysts are likely to view the capital raise as a positive development, given the strong investor support and the strategic use of funds. The discount on the placement shares may cause some short-term volatility, but the long-term outlook remains promising due to the potential of the VHD Block Technology and the McIntosh Project.
Conclusion:
Investors should keep an eye on GCM's progress in commercializing its VHD Block Technology and the development of the McIntosh Project. These initiatives are expected to drive substantial growth and deliver significant value to shareholders. Staying informed on GCM's strategic advancements will be crucial for making informed investment decisions.