Accelerate Resources Ltd (ASX:AX8) will raise $3 million in a placement to professional and sophisticated investors, with funds to primarily be used to explore its Woodie Woodie North Manganese Project, as well as progressing its East Pilbara Lithium Project and Comet Gold Project.
AX8 is looking to become the next Australian manganese producer, supplying high-grade manganese, a key mineral, to the steel and EV industries.
Its main projects include the Comet Gold Project hosted within some of Western Australia’s most prolific greenstone belts in Western Australia and the Tambellup Kaolin Project, also in Western Australia.
Recently, the company has focused on a Phase 2 reverse circulation (RC) drilling campaign of 2,400 metres completed at Area 42 at Woodie Woodie.
Drilling confirmed an extensive network of enriched manganese caps up to 7 metres thick with moderate to high-grade manganese. This has potential for significant tonnages of low-strip DSO material.
Phase 3 drilling at Woodie Woodie North will target ongoing resource drilling at Area 42 as well as equally prospective areas of outcropping manganese along strike and within the same structural setting.
Accelerate will also soon undertake lithium exploration at its 100%-owned East Pilbara tenements. This will include a sampling program on potential new pegmatite targets identified within the Lithium Prospective Zone.
Rapidly advancing battery metals strategy
AX8 managing director Yaxi Zhan said: “We are delighted with the level of support we have received for this placement. Together with existing cash on hand, these funds will ensure we are well funded to rapidly advance our battery metals strategy, and in particular, exploration across our portfolio of highly prospective manganese and exploration projects in the prolific Pilbara Region of Western Australia.
“At our Woodie Woodie North Manganese Project, we await assay results from recent drilling and we are already planning our next drill program and work is underway for our maiden manganese resource.
"At our East Pilbara Lithium Project, fieldwork is commencing next week and we look forward to keeping the market informed as that exploration progresses.”
About the placement
The well-supported placement will result in the issue of up to 107,142,857 new fully paid ordinary shares at an issue price of $0.028 per share, representing a 9.5% discount to the 5-day VWAP on Tuesday, November 8, 2022 (A$0.0309).
40,568,834 new shares in the company will be issued on or around November 21, 2022, with the remaining 66,574,023 new shares to be issued subject to shareholder approval to be sought at a general meeting of shareholders anticipated to be held mid-late December 2022 (Tranche 2).
New shares in AX8 issued under the placement will rank equally with its existing shares on issue. Placement participants will also receive an attaching unlisted option on a one-option-for-every-two-shares basis with an exercise price of $0.05 per option, expiring two years from the date issue.