PERTH (miningweekly.com) – Exploration and development company Vital Metals will raise up to A$3.8-million in a two-tranche share placement to accelerate exploration at its Boili gold project, in Niger, and to progress its Watershed tungsten project, in Queensland.
The ASX-listed company will place some 329.9-million shares on April 4, under its existing placement capacity, at a price of 0.9c each.
A second tranche of up to 92.29-million shares will be issued subject to shareholder approval. The second tranche placement will also be priced at 0.9c each.
The issue price represented a discount of 18.2% on Vital’s last closing price, and a 15.4% discount to the five-day volume-weighted average price.
“Completing this placement will allow Vital to accelerate the exploration of Bouli, where we have recently reported ultra-high results from the Bella Tondi prospect, and we expect to identify more high-grade shoots by targeting along strike, down dip and down plunge extensions to the mineralisation,” said Vital MD Mark Strizek.
Funds from the placement will also allow Vital to update the Watershed resource estimate and revise and optimise the mining schedule, while the company continues discussions with potential offtake partners.
An independent review into the Watershed tungsten project recently reduced the expected capital costs from A$172-million to A$105.8-million. The review considered proposed modifications to the plant design, layout, site access, power supply, accommodation and mining capital, and obtained updated quotations from local and engineering, procurement and construction contractors.