Polymetals Resources Ltd has opened a share purchase plan (SPP) with the aim of raising up to $3.2 million to support the restart of the Endeavor Silver-Zinc Mine in central New South Wales and continue exploration at and near the mine.
This comes hot on the heels of an institutional placement which saw the company raise $35 million, before costs, by issuing 43.75 million new shares at $0.80 per share to a number of sophisticated and professional investors.
READ: Polymetals Resources raises $35 million to make Endeavor great again
The SPP, which is not underwritten, provides eligible shareholders with the opportunity to subscribe for up to $30,000 worth of new shares at $0.80 per share without incurring any brokerage or other transaction costs.
For eligible shareholders
Eligible shareholders are those who:
- were registered as a holder of the company's shares at 7pm (Sydney time) on the record date of February 7, 2025, with an address in Australia or New Zealand;
- are located in Australia or New Zealand; and
- are not in the United States and are not acting for the account or benefit of persons in the US (or, in the event such shareholders do act for the account or benefit of a person in the US, they are not participating in the SPP in respect of that person).
As the SPP is not underwritten, the total amount raised may be less than A$3.2 million and the company may accept additional applications, resulting in a higher total raise or scale-back applications, either in whole or in part, should the total demand exceed its requirements.
Offer price
The new shares to be issued under the SPP are expected to be issued by the company on March 17, 2025.
The offer price of A$0.80 represents:
- A 6.4% discount to the closing price of A$0.855 on February 6, 2025;
- A 9.5% discount to the 15-day volume-weighted average price (VWAP); and
- A 6.8% discount to the 30-day VWAP of A$0.858 prior to the company entering a trading halt on February 6, 2025.
Polymetals directors who are residents of Australia or New Zealand are permitted to participate fully in the SPP, with all directors confirming their intention to acquire shares through the plan.
Use of funds
Funds from the capital raising will strengthen the company’s balance sheet as it moves toward first silver and zinc production at Endeavor, expected in the second quarter of 2025.
The funds will also support near-mine exploration activities, including work at the Carpark prospect, as well as broader regional exploration initiatives. A portion of the capital will be allocated to corporate and general working capital requirements.
Restart on track
After the placement, Polymetals executive chairman Dave Sproule said: “Our Endeavor restart activities remain on track and the Polymetals team looks forward to commissioning the operation to become Australia’s next silver and zinc producer.
"Timing is particularly encouraging against the backdrop of strong A$ zinc and silver prices and the favourable treatment terms currently available to zinc concentrate producers.
“During the past two years, collation and validation of 50 years of exploration data has identified numerous and compelling near-mine and regional exploration targets.
"Alongside our measured approach to testing of the Carpark Prospect to the immediate south of the Endeavor mine, we have been building our exploration team with practical, experienced staff to advance to testing high-priority targets.
"As well as strengthening the Polymetals balance sheet, funds from this raising will allow us to significantly step up the company’s exploration activities and we look forward to updating the market on our exploration results.”