PERTH (miningweekly.com) – ASX-listed Blackstone Minerals will raise A$60-million in a share placement and share purchase plan (SPP) to fund work in Vietnam.

The company on Monday announced that it had received firm commitments for the placement of more than 94.8-million ordinary shares, at a price of 58c each, to raise A$55-million.

Some 38.1-million of these shares would be placed under Blackstone’s existing placement capacity, raising an initial A$22.1-million, while a second tranche placement of 56.6-million shares, to raise a further A$32.8-million, would be subject to shareholder approval at a meeting scheduled for December 16.

“The company is delighted to have attracted high quality Australian and international investment managers to its register. Blackstone’s vertically integrated nickel sulfide project in Vietnam is a rare growth opportunity that received overwhelming interest during the book building process. In the coming months the company will deliver updated and maiden resources for its key development targets at Ta Khoa. These targets are the basis of the soon to be completed pre-feasibility study for the upstream business unit,” said MD Scott Willaimson.

“The successful completion of the capital raising provides shareholders with the highest leverage and exposure to future value accretive events. The company is well capitalised to independently de-risk the Ta Khoa project and thereby organically elevate its status as a supplier of choice into lithium-ion battery and electric vehicle supply chains.

“Blackstone is cognisant of its first mover advantage and the current injection of capital catalyses the company’s development pathway which in turn will ensure strategic competitiveness. Blackstone is on an accelerated pathway towards completing feasibility studies, progressing pilot plant testing and advancing partnership negotiations,” said Williamson.

In addition to the share placement, Blackstone would also undertake an SPP to raise a further A$5-million.

Under the SPP, shareholders could subscribe for up to A$30 000 worth of new shares in the company, also priced at 58c a share.

The SPP will close on November 19.