Meteoric Resources NL (ASX: MEI) (Meteoric or the Company) is pleased to announce that it has received firm commitments to raise $27.5 million (before costs) via a placement for the issue of approximately 250 million new fully paid ordinary shares (New Shares) at an offer price of $0.11 per New Share (Offer Price) (Placement).
In addition to the Placement, the Company is also undertaking a Share Purchase Plan (SPP) at the same offer price as the Placement to raise up to $5 million. Together, the Placement and SPP will raise total gross proceeds of up to $32.5 million. The Placement marks another critical step in the development of the Caldeira Rare Earth Iconic Clay Project (Caldeira) with permitting and a Pre-Feasibility Study (PFS) for the project rapidly advancing.
Commenting on the Placement, Meteoric Chief Executive Officer, Nick Holthouse, said: The strong demand received from both Australian and international institutional investors for this Placement is testament to the Tier-1 nature of the Caldeira Project, which has the potential to become one of the lowest cost sources of rare earths outside of China and disrupt the broader rare earths industry. The Placement de-risks Meteoric's strategy and ensures we are well-capitalised to accelerate development of Caldeira including the completion of a PFS, commissioning of a demonstration plant, progression of key licenses and approvals and ongoing exploration and drilling activities. Further, it provides Meteoric with significant runway to continue progressing options around alternative long-term financing solutions, including potential government grants and/or strategic partnerships.
Use of Proceeds Proceeds from the Placement and SPP, together with existing cash, are currently proposed to be applied towards: Exploration and drilling activities; Studies, including completion of a PFS and commencement of a Definitive Feasibility Study; Construction and utilisation of a demonstration plant; Land acquisitions and progressing licensing and approvals and Corporate costs and general working capital.
Placement Details
The Company will issue approximately 250 million New Shares under the Placement at an Offer Price of $0.11 per share, which represents an 8.3% discount to Meteoric's last closing share price of $0.12 per share on Tuesday, 23 July 2024. The Placement will take place in a single tranche pursuant to the Company's available placement capacity under ASX Listing Rule 7.1. New Shares issued under the Placement will rank equally with the Company's existing fully paid ordinary shares on issue. Settlement of New Shares is expected to occur on Thursday, 1 August 2024, with allotment to occur shortly thereafter on Friday, 2 August 2024. The Placement is not underwritten. Barrenjoey Markets Pty Limited, Canaccord Genuity (Australia) Limited and SCP Resource Finance LP acted as Joint Lead Managers and Bookrunners to the Placement. Euroz Hartleys Limited acted as Co-Manager to the Placement.
Contact:
Nicholas Holthouse Michael Vaughan
Chief Executive Officer
Meteoric Resources
Tel: +61 428 964 276
Email: nholthouse@meteoric.com.au
Not an offer in the United States
This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws
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