Oar Resources are set to accelerate exploration across its battery metal portfolio with the Company having secured $1.75 million dollars in funding and ramping up development of its wholly owned assets across Western and South Australia.
The funds will be raised through a 24-month convertible note program with free attachment options for both new and existing groups of sophisticated and professional investors.
A One-Two Punch
The convertible notes will be issued in two tranches and valued at one thousand dollars each, the first Tranch will comprise $968 thousand dollars and is expected to be settled by next week followed by a second tranche comprising the remaining $782 thousand dollars which will be issued and paid upon receiving shareholder approval at a shareholder meeting expected in June.
The Company considered a number of funding options to accelerate the development of its battery-metal portfolio and concluded that the convertible note was the most favourable option.
Building a Battery-Metal Bastion
While Oar has a portfolio ranging across the globe from the USA to Peru, funds from this raising will be dedicated towards the Company’s growing battery-metal portfolio in Australia, with a particular focus on its South Australian Graphite Project and its recently acquired Denchi Lithium Project in Western Australia.
Despite only being acquired in November of last year, uncovering Denchi’s lithium potential has quickly become one of Oar’s top priorities, with the discovery of several potentially lithium-bearing pegmatites at the Project leading the Company to expand the Projects tenement by over 350 per cent with the application for five additional tenements.
A lot of excitement for Denchi comes from its proximity to Liontown Resources’ massive 156Mt Kathleen Valley lithium deposit which lies just 120 km from Denchi and recently saw a third acquisition attempt by Albermarle as the US Mining giant tries to get its hands-on Kathleen Valleys lithium treasure.
Funds will also be put towards upgrading the graphite project’s current Indicated and Inferred MRE of 13.47 Mt @3.3 total graphitic carbon, with the Company now planning to undertake a 5000-metre drilling program to expand this existing MRE.
Alongside expanding the MRE, drilling will provide further samples for the next stage of test work to build on previous work that shows encouraging grades of 89.1 per cent TGC.
Eyes on the Near Future
The Company said that this investment will provide the funding necessary for it to execute its near-term goals.
“We are excited at the potential that both the Denchi Lithium and Oar Graphite Projects offer, and the opportunity to execute additional activities such as drilling, an upgraded JORC Resource, and the commencement of feasibility studies,” Chief Executive Paul Stephen said.
“It’s another important milestone in particular the commodities which play such a critical role in the emerging green technology economy and form a key part of OAR’s strategy to build a portfolio of assets focused on battery and other critical minerals.”
OAR’s Australian Stock Exchange-listed share price was trading at 0.3c today (11.50 am UTC+ 8 hours).