Future Metals NL (ASX:FME, AIM:FME) has raised £500,000 (A$872,296) from high-net-worth investors in the UK to boost liquidity and market presence on its London Stock Exchange (AIM) listing.
The platinum group metals (PGM) stock recently completed a A$5 million placement and A$1 million share purchase plan, designed to support exploration and a scoping study at the company’s cornerstone Panton Project in northern Western Australia.
With work underway and the new funds in tow, FME has engaged a UK-based investor relations firm to help raise its profile in the UK market — increasingly a hotbed for platinum group metal stocks.
Show me the money
Under the £500,000 raise, high-net-worth investors subscribed for 7.14 million new, fully paid ordinary shares at a price of 7p (around A$0.12) apiece, representing a 12% premium to the mid-market closing price of FME shares on the AIM.
Every three placement shares come with one free-attaching warrant (similar to the share options we see in capital raises in Australia), exercisable at 6p (A$0.10) before June 11, 2024.
Net proceeds will also progress the company’s exploration program at Panton, covering the search for nickel, copper and platinum group elements, as well as the scoping study on the existing multi-million-ounce PGM-nickel resource.
All eyes on UK market
Commenting on the capital raise, Future Metals managing director and CEO Jardee Kininmonth said the UK represented a particularly lucrative market for companies in this sector.
“The London Stock Exchange has historically been the primary market for many PGM companies, typically with assets in South Africa and Russia,” he explained.
“Future Metals, with its high-quality Panton PGM-Nickel Project in Australia, has the potential to attract significant interest in the UK via its AIM quotation.
“We are therefore delighted to welcome new UK investors as shareholders and look forward to informing the market as we progress our exciting exploration program and scoping study activities over the coming months.”