Lunnon sets A$20.5m raising target

17th August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Nickel explorer Lunnon Metals will raise A$20.5-million in a share placement and share purchase plan (SPP) to strengthen its balance sheet and fund exploration in Western Australia.

The company on Thursday announced it had received firm commitments for a two-tranche share placement to raise A$18-million.

The first tranche will consist of 18.9-million shares, issued at a price of 90c each under the company’s existing placement capacity, to raise an initial A$17-million. The second tranche of 1.1-million shares, to raise a further A$1-million, will be subject to shareholder approval.

The second tranche placement will be made to major shareholder St Ives Gold Mining Company, and will result in the company holding a 31.1% interest in Lunnon.

The placement price of 90c a share represents a 10% discount to Lunnon’s last trading price and an 11.2% discount to the company’s five-day volume weighted average share price.

In addition to the share placement, Lunnon will also undertake an SPP, targeted at raising a further A$2.5-million. Eligible shareholders will be able to subscribe for up to A$30 000 of new shares in the company, also at a price of 90c each.

The SPP will open on August 28 and close on September 14.

Funds raised will go towards discovery work in Kambalda, Lunnon said on Thursday.

"The company has made rapid progress since listing in June 2021 through maintaining an aggressive exploration programme, that delivered the Baker discovery, impressive mineral resource growth and a steady focus on de-risking its assets through data-driven, technically rigorous studies,” said MD Edmund Ainscough.

“This approach recently culminated in the declaration of an initial ore reserve at Baker along with stand-out financial and physical results from the preliminary feasibility study. The support of our existing and new shareholders in this capital raising is greatly appreciated and will allow us to continue this strategy at a time when the significance of nickel sulphides, and Kambalda especially, to the clean energy transition is growing at a rapid pace.

“Lunnon Metals now presents as the only ASX-listed exposure to Kambalda’s impressive nickel discovery and production record. This is a responsibility that everyone at the company embraces as an opportunity to continue Kambalda’s amazing story well into the future.”

Edited by Creamer Media Reporter



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