28 September 2020
Vital Metals Limited advises that it has successfully received firm commitments to raise A$8.0 million (before costs) in new equity via a fully committed share placement to institutional, sophisticated and professional investors.
The Placement comprises the issue of approximately 400 million new shares in the Company at an issue price of A$0.02 per New Share. The New Shares to be issued under the Placement will rank pari passu with existing fully paid ordinary shares and the Company will be utilising its existing placement capacity in accordance with the ASX Listing Rules and will issue 184,488,872 New Shares pursuant to Listing Rule 7.1 and 215,511,128 New Shares pursuant to Listing Rule 7.1A.
Net proceeds from the Placement will primarily be used to progress the Company towards commencing processing operations in Q2 CY2021 including completing the purchase of the ore sorter, sampling and met testwork, extraction plant EPCM and for general working capital. Very strong demand for the Placement resulted in additional funds being raised which will be used to accelerate further exploration work at the Tardiff zone within the Company’s Nechalacho Project.
Vital Metals’ Managing Director, Geoff Atkins, commented: “We are pleased with the support from new institutional investors and existing shareholders. This equity funding coupled with the recent announcement that Vital has executed a binding term sheet to construct its rare earth extraction facility adjacent to Canada’s first rare earth separation facility underpins Vital’s plans to become the World’s newest independent supplier of clean rare earth feedstock outside China”.
Canaccord Genuity acted as Lead Manager to the Placement. Peloton Capital acted as Co-Lead Manager to the Placement.
Settlement of the new Placement securities is expected to occur on 1 October 2020, with quotation on 2 October 2020.