Group 6 Metals raises money to fund Dolphin manufacturing

PERTH ( – Tungsten developer Group 6 Metals will elevate A$20-million by a share placement to carry its Dolphin tungsten mine, in Tasmania, into manufacturing.

The ASX-listed firm has acquired binding commitments for the problem of greater than 117.6-million shares, at a worth of 17c every, representing a ten.5% low cost to its final closing worth.

Greater than 87.7-million shares might be issued beneath the corporate’s present placement capability, with the rest of the shares to be issued to MD and CEO Keith McKnight, chairperson Johann Jacobs and government director Chris Ellis, topic to shareholder approval on the firm’s extraordinary common assembly.

Following the share placement, the corporate may even undertake a share buy plan (SPP) to boost as much as A$3-million on the similar worth because the share placement. Eligible shareholders can subscribe for as much as A$30 000 of further shares within the firm.

The SPP will open on December 6 and shut on January 6.

Buyers collaborating within the share placement and SPP will obtain one choice for each two shares subscribed for, at a strike worth of 28c every and a two-year time period.

“We’re delighted to have secured the help of the brand new and present traders who’ve participated on this A$20-million fairness elevate as we transfer nearer to a significant milestone within the firm’s historical past,” stated McKnight.

“The commitments from traders are a powerful endorsement of the progress Group 6 Metals has made up to now on the Dolphin tungsten mine which is able to enter the ultimate phases of development within the coming months. We’re additionally delighted by the continued help that our main shareholders proceed to supply the corporate after they have been once more closely concerned on this placement.

“As we close to the graduation of manufacturing at Dolphin, this fairness elevating supplies funding certainty for the corporate at a crucial time in our improvement. Regardless of a number of industry-wide challenges confronted by development tasks, akin to escalations in capital and working prices, our crew has labored tirelessly to make sure the venture stays on schedule to achieve this milestone within the first quarter of 2023. As lately introduced, now we have up to date our venture monetary metrics on this surroundings, considerably rising the online current worth from A$241-million to A$300-million pre-tax.”

The venture’s start-up capital prices have additionally elevated from the A$72.7-million to A$92.7-million, with deferred capital rising from A$56.5-million to A$61.2-million, whereas life-of-mine capital prices have elevated from A$129.2-million to A$153.9-million.

“The market fundamentals for tungsten proceed to be very optimistic for Group 6 Metals and we glance set to turn out to be a big provider of tungsten at a really beneficial time. With Dolphin on monitor to return on-line in 2023, a scarcity of tungsten focus has been forecast resulting from rising demand and restricted new provide set to turn out to be out there within the market,” stated McKnight.

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