Australian Critical Minerals Ltd (ASX:ACM), a Western Australian-based exploration entity focused on critical minerals, made its debut today on the Australian Securities Exchange (ASX).
The debut comes after the successful completion of an Initial Public Offering (IPO) where the company managed to raise $5 million, hitting the maximum subscription target.
ACM is an emerging critical minerals exploration company focused on projects to support the global transition away from fossil fuels. Its portfolio comprises six projects spanning 1,861 square kilometres across the Pilbara and Southwest Goldfields regions in the Tier-1 jurisdiction of Western Australia.
The IPO saw 25 million shares issued at $0.20 per share, providing the company with a market capitalisation of approximately $8.7 million at the IPO price.
Institutional and sophisticated investors demonstrated strong support for the offer, pushing demand well beyond the maximum subscription amount. State One Equities acted as the lead manager for the IPO.
What’s next
Australian Critical Minerals will use the funds from the IPO to initiate exploration activities at two major projects.
The first, the Cooletha Lithium Project, will see field personnel mobilising for mapping and sampling. The second, the Rankin Dome Rare Earth Project, anticipates the commencement of drilling later this quarter.
ACM managing director Dean de Largie expressed gratitude to the new shareholders, anticipating their long-term support. He welcomed Michael Wright and Gary Brabham to the ACM board, praising Wright's extensive corporate management experience and Brabham's robust knowledge in exploration, resource modelling, mine development and geology.
Energy scramble
“On behalf of the board, I would like to welcome our new shareholders to the ACM register and look forward to their long-term support, Dean de Largie said.
I welcome both Michael Wright and Gary Brabham to the ACM board. 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 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.
“We thank our shareholders that have supported us in the IPO and we are pleased to advise that ACM intends to issue a loyalty option post-listing, whereby each shareholder at the record date of the offer, anticipated to be in the next 3-6 months, will be given the opportunity to subscribe for one option for every two shares held.
“I would also like to take this opportunity to thank our lead manager State One Stockbroking for their support and input throughout the IPO process and also to express our gratitude to Steinepreis Paganin for their legal counsel, diligence and guidance.”
The company finished the day 12.49% higher at $0.225.