Metal Hawk is primed to fastrack the exploration of its extensive battery metal portfolio, having received firm commitments from a number of long-term sophisticated investors to raise a massive $1.2 million dollar through a strongly supported placement.
The placement will see the explorer issue 11,155,733 new fully paid ordinary shares at an issue price of $0.11 per share, representing a 15.4% discount to the closing price of Metal Hawk shares on the last trading day prior to the placement, with the majority of the placement being completed by existing major shareholders.
Metal Hawk’s Directors David Pennock and Michael Edwards will also subscribe for an additional 454,546 New Shares subject to shareholder approval, contributing $50,000 to the raising.
Metal Hawk expects the placement to be complete on or around 28 July 2023, at which point it will immediately direct funds to advance exploration activities at its recently acquired large-scale Yarmany Lithium-Nickel Project and its Fraser South REE Project.
Funds from the placement will be put towards commencing exploration at Yarmany in particular, as the Company works to unlock the highly prospective project potential nickel-lithium dual resource with the Project’s geological setting granting it considerable potential for komatiite-hosted nickel sulphides and pegmatite-hosted lithium mineralisation.
A number of nickel sulphide target areas have already been identified along the 282 square kilometre Project’s 50km strike length and a number of outcropping pegmatites have been observed across the Project’s largely unexplored tenure, with these outcropping pegmatites in particular being a key focus for initial exploration at Yarmany.
Proceeds will also allow Metal Hawk to keep up the pace at Fraser South and progress the Project into the next stage of drilling, where the Project’s maiden drilling program confirmed its rare earth potential by delivering thick, high-grade intersections up to 26m @ 1526ppm TREO and delivering a peak TREO grade of 4120ppm from 4m composite.
Also demanding follow-up is the high composition of high-value Magnetic Rare Earth Oxides identified with MREOs comprising an average of 20.5% of mineralised intervals returned in drilling.
The Company said that the strong support it has received for the placement demonstrates both the confidence of its investors and its directors in the strength of its portfolio.
“We are very pleased with the strong level of support from shareholders. We look forward to an exciting period for the Company with lithium and nickel exploration ramping up at Yarmany and the next phase of drilling at Fraser South due to commence shortly,” Managing Director Will Belbin.
MHK’s Australian Stock Exchange-listed share price is currently trading at 14.5c (4:13 pm UTC+ 8 hours).