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Australian Critical Minerals Hit the Boards Following $5m IPO

3 July 2023 14:07
ASX: ACM
ASX Australian Critical Minerals

Australian Critical Minerals (ASX: ACM) has brought its exciting portfolio of critical-metal projects to investors having hit the ASX and commenced trading today, with the Company now looking ahead as it plans to make the most of its fully subscribed $5 million dollar IPO and its promising projects.

Cashed Up

Following the completion of its IPO last week where it issued 25,000,000 shares at a price of $0.20 per share, the Company now holds a market cap of approximately $8.7 million at the IPO price, with this IPO being strongly supported by institutions and sophisticated investors and investor demand surpassing the maximum subscription amount as investors noted its powerful portfolio.

The explorer’s portfolio comprises 1861 square kilometres of Western Australia’s renowned Pilbara and Southwest Goldfields regions, with its projects focused on delivering the critical minerals required for the global transition away from fossil fuels such as lithium, tantalum, rare earth elements and kaolin.

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Figure 1: ACM Portfolio of Western Australian projects

While critical minerals are the Company’s main focus, its extensive portfolio also gives both the Company and its investors exposure to ever-popular commodities such as gold and iron ore.

It appears that investor excitement about ACM’s entrance to the ASX remains strong, with the explorer’s share price now standing at 23 cents after seeing a 15 per cent surge (1:00 pm UTC +800) in the mere hours since its listing at 9 am AEST.

Getting to Work

Cashed up and on the Boards, the explorer will waste no time getting to work uncovering the potential of its promising portfolio, with the Company already planning to put proceeds from its blockbuster IPO into kicking off exploration at its key Cooletha and Rankin Dome Projects.

Taking aim at the Pilbara’s growing lithium pedigree as demonstrated by the 259Mt Li2O Wodgina and 223Mt Li2O Pilgangoora Projects, ACM’s flagship Cooletha lithium project comprises over 100 square kilometres of lithium prospective ground and hosts a number of outcropping pegmatite swarms mapped over a 30km strike length.

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Figure 2: Map detailing Cooletha, and its surrounding projects.

Pegmatites at Cooletha are up to a hundred metres wide, outcrop over several hundred metres in length, and have been shown to host spodumene in surface samples, with the Project potentially being the largest spodumene-bearing pegmatite package in this emerging lithium region.

ACM has already dilated a number of high-priority targets for mapping and sampling, with an extensive program set to commence in the immediate future.

Following the conclusion of this mapping program, the Company plans to fire up the rig at its Rankin Dome REE Project in the Yilgarn, targeting an eight square kilometre REE anomaly that has shown auger sampling grades up to 1080ppm total rare earth oxides.

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Figure 3: Auger samples taken from Rankin Dome

The Company has already planned two separate 40-hole drill campaigns at the 331 square kilometre project, with the rig testing for ionic clays and bedrock-hosted REE models across the surface animal where 74 per cent of the samples taken in an auger sampling program showed grades above 115 TREO.

The first of the campaigns at Rankin Dome is set to commence in the September quarter, with additional infill drilling and expansion beyond the current REE near-surface anomaly expected shortly thereafter.

Right People, Right Place, Right Time

The Company noted that its listing couldn’t have come at a better time as governments and producers around the world fight for the supply of these critical metals, with the International Energy Committee (IEA) stating that for the world to meet critical metal demand for a number of future technologies, the output of the critical mineral and battery metal supply chain will have to increase ten-fold.

The IEA’s claim appears to have merit, with lithium seeing a 67.61% price surge last month in defiance of speculator belief that demand was waning due to a production increase late last year and indicating that this considerable increase in production might not be enough to satiate the growing hunger for the battery-critical metal.

“ACM lists on the ASX today with impeccable timing as end users and governments globally are scrambling to secure sources of energy-related commodities to support the drive to a green energy future. ACM’s projects are in ideal geological settings and have the size and logistical attributes to permit large-scale resource development,” Managing Director Dean de Largie said.

“With Michael Wright as our Chairman, I look forward to benefiting from his decades of corporate management experience. Gary Brabham has extensive experience in exploration, resource modelling and mine development combined with a deep geological acumen and we welcome his insights and advice as the ACM projects develop and ACM grows to fulfil its potential.”

ACM’s Australian Stock Exchange-listed share price has risen 15 per cent today, currently selling at 23c (1:55 pm UTC+ 8 hours).

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