GreenTech Metals Raises $3.4M to Fund Whundo Copper Project Exploration
GRE (GRE) Share Update November 2024 Tuesday 19th
GreenTech Metals Secures $3.4M for Whundo Copper Project Expansion
GreenTech Metals Limited (ASX: GRE) has announced a successful capital raise of $3.4 million to fund exploration activities at its Whundo Copper Project in Western Australia.
Instant Summary:
- Raised $2.3 million through an oversubscribed placement.
- Secured a $1 million drill-for-equity agreement with Topdrill.
- Received a $140,000 grant from the WA Government's Exploration Incentive Scheme.
- Funds will support the Whundo Copper Project's staged drill program.
Capital Raise Details
GreenTech Metals Limited has successfully raised $2.3 million through an oversubscribed placement to sophisticated and institutional investors. This placement involved the issuance of 28,750,000 new fully paid ordinary shares at an issue price of $0.08 per share, representing a 17.5% discount to the last traded price of $0.097.
Drill-for-Equity Agreement
In addition to the placement, GreenTech has entered into a drill-for-equity agreement with Topdrill Pty Ltd, a leading drilling services company. This agreement allows GreenTech to issue shares in lieu of cash payments for up to 35% of drilling costs, with a maximum value of $1 million.
Exploration Incentive Scheme Grant
The company also secured a $140,000 grant from the Western Australian Government's Exploration Incentive Scheme. This grant will co-fund drilling activities at the Shelby target within the Whundo Copper Project.
Use of Funds
The funds raised will primarily be used to advance the exploration drill program at the Whundo Copper Project, with additional minor work at the Ruth Well and Osborne JV lithium projects. GreenTech plans to release details of the drill program next week, with drilling set to commence in December.
The successful capital raise and strategic agreements position GreenTech Metals for significant exploration progress at the Whundo Copper Project. This could enhance the company's resource base and potentially increase its market valuation. The discount on the placement shares may affect short-term stock performance, but the long-term benefits of the exploration activities could outweigh this.
Investor Reaction:
Analysts are likely to view the capital raise and strategic partnerships positively, as they demonstrate strong investor confidence and provide the necessary funding for critical exploration activities. The drill-for-equity agreement with Topdrill is particularly noteworthy, as it aligns the interests of the drilling contractor with those of GreenTech Metals.
Conclusion:
Investors should keep an eye on the upcoming drill program details and the commencement of drilling activities in December. These developments could provide further insights into the potential of the Whundo Copper Project and impact GreenTech's market position.