GreenTech Metals Restarts Whundo Copper Drilling and Secures Funding
GRE (GRE) Share Update January 2025 Tuesday 14th
GreenTech Metals Resumes Whundo Copper Drilling and Completes $2.3M Placement
GreenTech Metals Limited (ASX: GRE) has restarted its stage 2 drilling program at the Whundo Copper-Zinc project in Western Australia, following a holiday break. The company also announced the completion of the second tranche of a $2.3 million placement to institutional investors.
Instant Summary:
- Stage 2 of a 4,000m diamond core drilling program has recommenced.
- Focus on down plunge conductor targets at Austin, Shelby, Yannery, and Ayshia.
- Potential for significant expansion of existing Cu-Zn resources.
- Completion of $2.3M placement to institutional and sophisticated investors.
- Additional funding from a $1M drill for equity agreement and a $140,000 EIS grant.
Drilling Program Details
GreenTech Metals has resumed its stage 2 drilling campaign at the Whundo Copper-Zinc project, located in the West Pilbara region. The program, which was paused over the Christmas and New Year period, aims to explore down plunge conductor targets associated with mineralized shoots at key locations such as Austin, Shelby, Yannery, and Ayshia.
The stage 1 program, which included 1,710 meters of reverse circulation (RC) drilling, identified significant potential for resource expansion. The current stage 2 drilling will be complemented by downhole electromagnetic (DHEM) surveys to refine targeting and potentially identify new resources.
Funding and Financial Strategy
To support its exploration efforts, GreenTech Metals has successfully completed the second tranche of a $2.3 million placement to sophisticated and institutional investors. This funding, approved at an extraordinary general meeting on December 31, 2024, will be crucial for advancing the company's exploration plans.
In addition to the placement, GreenTech has entered into a $1 million drill for equity agreement with its drilling contractor, Topdrill, and has received an Exploration Incentive Scheme (EIS) grant of up to $140,000 from the Western Australian Government. These financial arrangements will help ensure the continued progress of the Whundo project.
Resource Expansion Potential
The Whundo project currently hosts a resource of 6.19 million tonnes at 1.12% copper and 1.04% zinc. The stage 2 drilling program aims to expand these resources significantly by targeting new conductor plates identified in the stage 1 program and through recent geophysical surveys.
GreenTech's Executive Director, Tom Reddicliffe, expressed optimism about the potential for discovering additional resources, which could enhance the project's value and support the company's strategic goals in the battery storage and electric vehicle sectors.
The resumption of drilling and successful completion of the funding placement are positive developments for GreenTech Metals. These actions demonstrate the company's commitment to advancing the Whundo project and could lead to a significant increase in resource estimates. This potential expansion may positively influence GreenTech's stock price, attracting investor interest and confidence in the company's growth prospects.
Investor Reaction:
Analysts are likely to view the resumption of drilling and the completion of the funding placement as positive indicators of GreenTech's operational and financial health. The potential for resource expansion at Whundo could lead to increased investor interest, particularly from those focused on the battery metals sector.
Conclusion:
Investors should keep an eye on the results of the stage 2 drilling program and subsequent resource updates. GreenTech Metals' strategic focus on expanding its copper-zinc resources at Whundo positions the company well within the growing demand for battery metals. Continued successful exploration could enhance shareholder value and solidify GreenTech's position in the market.