Group 6 Metals Limited (ASX: G6M) has successfully raised $3.7 million through its Share Purchase Plan (SPP), with funds to be put towards bolstering operations at the Dolphin Tungsten Mine.
Strong Investor Support
The SPP offer, which was announced on May 8, 2023, was well-received by shareholders, with valid applications totalling $3.72 million. Resultantly, Group 6 Metals will issue 26,582,953 shares at an offer price of $0.14 per share, which matches the recently completed Placement price.
In addition to the new shares, each investor participating in the SPP will also be granted an attaching option on a 2-for-3 basis, with these options having a strike price of $0.21 per share and expiring on June 30, 2025.
Support for Dolphin Tungsten Mine Operations
Following a successful capital raising initiative, the SPP comes on the heels of commitments totalling approximately $27 million through a Placement.
The total funds raised amount to a minimum of $30 million, providing the necessary capital to advance operations at the Dolphin Tungsten Mine towards positive cash flow.
Located on Tasmania’s King Island, The Dolphin Tungsten Mine is primed to become a world-class operation, contributing to the global supply of tungsten while driving economic growth and sustainability in the region.
Recently, the Company achieved a noteworthy milestone by successfully initiating commercial production at the Mine, yielding an impressive output of approximately ten tonnes of saleable tungsten concentrate.
The funds raised through the SPP, combined with those raised in the recently completed Placement, will bolster Group 6 Metals’ balance sheet and provide support for the Dolphin Tungsten Mine, where the Company plans to ship its first concentrate from later this month.
Furthermore, the funds will provide the Company with the flexibility to expedite feasibility studies for the development of the Bold Head Mine, downstream processing, and integration of renewable energy sources, with this holistic approach enhancing the overall sustainability and efficiency of the operation.
Looking Ahead
Moving forward, Group 6 Metals intends to allocate the remaining portion of the SPP to sophisticated and professional investors, aiming to raise a maximum of $5 million.
The Company plans to complete this allocation as soon as possible, within three months following the Extraordinary General Meeting held on June 15, 2023.
G6M’s Australian Stock Exchange-listed share price is currently selling at 13 cents (1:55 pm UTC+ 8 hours).
