IND Secures Funding to Propel High Purity Quartz Projects Forward
INDUSTRIAL MINERALS LTD (IND) Share Update July 2024 Wednesday 31st
IND Secures A$1.9 Million Placement to Advance High Purity Quartz Projects
Industrial Minerals Ltd (ASX: IND) has successfully secured firm commitments for a A$1.9 million placement and has initiated a A$500,000 Share Purchase Plan (SPP) to further its High Purity Quartz (HPQ) projects.
Instant Summary:
- IND secures A$1.9 million from new and existing investors.
- Launch of A$500,000 Share Purchase Plan (SPP) for eligible shareholders.
- Funds to be used for resource infill drilling, metallurgical testwork, and marketing.
- Directors to subscribe for a minimum of A$225,000, subject to shareholder approval.
Funding Details
Industrial Minerals Ltd (ASX: IND) has received firm commitments from new and existing professional, sophisticated, and institutional investors to raise A$1.9 million through the issuance of 9,500,000 fully paid ordinary shares at A$0.20 per share. Each new share will come with one free-attaching option exercisable at A$0.30, valid for three years.
The placement was completed with strong institutional support and will utilize the company's available placement capacity under ASX Listing Rules 7.1 and 7.1A. Additionally, IND's directors have committed to subscribing for a minimum of A$225,000, pending shareholder approval at a general meeting in September 2024.
Share Purchase Plan
IND has also launched a Share Purchase Plan (SPP) to raise up to A$500,000, offering eligible shareholders the opportunity to purchase shares at the same price as the placement. The SPP aims to issue up to 2,500,000 shares, each accompanied by one attaching option for every two shares subscribed.
Use of Funds
The funds raised will be allocated to several key initiatives, including a resource infill drilling program at the Pippingarra and Mukinbudin HPQ projects, metallurgical process testwork, product marketing, and general working capital. This comprehensive approach aims to advance IND’s HPQ projects and position the company as a leading supplier of high-purity quartz materials.
Management's Vision
Managing Director Jeff Sweet expressed his satisfaction with the successful placement and the support from leading shareholders. He emphasized the importance of these funds in supporting IND's HPQ Development Strategy and the company's vision to become a preferred supplier in the high-purity markets, including PV Solar and Semiconductor industries.
Timetable
The indicative timetable for the SPP and placement includes key dates such as the record date for the SPP on 30 July 2024, the opening date for the SPP on 2 August 2024, and the closing date for the SPP on 30 August 2024. The general meeting for shareholder approval of director participation is scheduled for mid-September 2024.
The successful placement and the launch of the SPP are positive indicators for IND's future prospects. The funds will enable the company to advance its HPQ projects, potentially increasing its market share in the high-purity quartz sector. This could lead to a positive impact on the company's stock price as investors gain confidence in IND's strategic direction.
Investor Reaction:
Analysts are likely to view this development favorably, given the strong institutional support and the clear use of funds to advance key projects. The participation of directors, subject to shareholder approval, further underscores the confidence in the company's future.
Conclusion:
Investors should keep an eye on the progress of IND's HPQ projects and the upcoming general meeting for shareholder approval. The successful execution of these initiatives could significantly enhance the company's market position and drive long-term value for shareholders.