Elementos Ltd (ASX:ELT, OTC:ELTLF) has wrapped up a A$3 million placement to tick off some key milestones at its Oropesa Tin Project in Spain, including a definitive feasibility study (DFS).
Funds for Oropesa
The placement comes at a time when the company is making significant headway at Oropesa and it was supported by existing and new institutional, professional and sophisticated investors.
Company directors also strongly supported the capital raise, with chairman Andy Grieg subscribing for 26.67% or A$800,000 of shares. In total, directors of the company subscribed for 4,805,556 shares or around A$865,000.
Fully paid ordinary shares will be issued under the placement at an issue price of A$0.18 per share.
Morgans and BW Equities acted as joint lead managers to the placement.
“The capital raising will assist the company in achieving key milestones, setting it up for its final development and delivery phases,” Elementos managing director Joe David said.
“Proceeds from the placement will facilitate the completion of Oropesa’s definitive feasibility study (DFS), progress to the next phase of project approvals, and shortlisting of offtake and debt providers.
“Oropesa remains one of the few globally significant tin projects that is development ready to deliver tin into significant forecast deficits in the 2020s.
“The forecast gap between tin supply and demand continues to widen, with forecast growth due to the increasing consumption of electronic equipment being met with a weak supply pipeline, Elementos is focussed on bringing this project into operations as soon as feasible.”
Elementos shares will recommence trading on ASX today and the company has requested the trading halt be lifted on opening of the market today.
The placement price of A$0.18 represents an 18.2% discount to the last close price of A$0.22 and a 23.9% discount to the 15-day volume weighted average price leading up to the announcement of the placement.
About Elementos
Elementos says it is committed to the safe and environmentally conscious exploration, development, and production of its global tin projects.
The company owns two world-class tin projects with large resource bases and significant exploration potential in mining-friendly jurisdictions.
Led by an experienced-heavy management team and board, Elementos is positioned as a tin developer, with an ability to develop projects in multiple countries and is well-positioned to help bridge the forecast significant tin supply shortfall in coming years.
This shortfall is partly driven by reduced productivity of major tin miners in addition to increasing global demand due to electrification, green energy, automation, electric vehicles and the conversion to lead-free solders as electrical contacts.