Waratah Minerals Secures $5 Million for Spur Project Exploration
WARATAH MINERALS LIMITED (WTM) Share Update August 2024 Tuesday 6th
Waratah Minerals Announces $5 Million Capital Raise to Accelerate Spur Project Exploration
Waratah Minerals Limited (ASX: WTM) has announced a successful capital raise of $5 million to accelerate exploration activities at its Spur Project.
Instant Summary:
- Waratah Minerals raises $5 million through share placement.
- The placement price is A$0.25 per share, a 7.4% discount to the last close price.
- Funds will be used for RC and diamond drilling, geophysics, geochemistry, and general working capital.
- The placement will be executed in two tranches, with the second tranche subject to shareholder approval.
Capital Raise Details
Waratah Minerals Limited has successfully secured firm commitments to raise $5 million through a share placement to institutional, sophisticated, and professional investors. The placement price is set at A$0.25 per share, representing a 7.4% discount to the last close price of A$0.27 as of 1 August 2024.
The placement will be executed in two tranches. The first tranche will raise approximately $1.8 million under the company's existing placement capacity as per ASX Listing Rules 7.1 and 7.1A. The second tranche, which aims to raise approximately $3.2 million, will be subject to shareholder approval. A Notice of Meeting will be distributed to shareholders around 21 August 2024 to seek approval for the second tranche.
Use of Funds
The proceeds from the placement will enable Waratah Minerals to accelerate exploration activities at the Spur Project. Specifically, the funds will be allocated for RC and diamond drilling, target definition geophysics and geochemistry, and general working capital. This strategic move aims to capitalize on the recent encouraging results from the Spur Project.
Management Comments
Managing Director Peter Duerden expressed gratitude to existing shareholders for their continued support and welcomed new shareholders to the register. He stated, 'The support reflects the quality of the evolving discovery opportunity at the Spur Project, with the company now in a strong position to test multiple targets for epithermal-porphyry gold-copper mineralization.'
Indicative Timetable
The proposed key dates for the placement are as follows:
- Announcement of the Placement: 6 August 2024
- Settlement of the first tranche: 12 August 2024
- Allotment of New Shares issued under the first tranche: 13 August 2024
- Dispatch of Notice of Meeting: 21 August 2024
- General Meeting: 23 September 2024
- Settlement of the second tranche: 30 September 2024
- Allotment of New Shares issued under the second tranche: 1 October 2024
The capital raise will likely have a positive impact on Waratah Minerals' stock price as it demonstrates strong investor confidence and provides the necessary funds to advance exploration activities. The 7.4% discount to the last close price is relatively modest, indicating robust demand for the shares.
Investor Reaction:
Analysts are expected to react positively to the announcement, given the strategic use of funds for exploration and the strong support from both existing and new investors. The successful capital raise positions Waratah Minerals well for future growth and discovery at the Spur Project.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting and the subsequent exploration results from the Spur Project. Waratah Minerals' ability to effectively utilize the raised funds will be crucial in driving future stock performance.