Technology Metals Australia Ltd (ASX:TMT) has secured firm commitments for an $11.5 million capital raise through the placement of about 41.1 million new fully paid ordinary shares at 28 cents per share.
The placement has garnered strong support from existing and new strategic and institutional investors, including cornerstone shareholder Resource Capital Fund VII L.P. (RCF VII).
RCF VII, which has been a key investor in the company since late 2021, has committed $2.75 million, increasing its stake to approximately 18% of the issued capital post-placement.
The successful placement validates the advanced stage and technical merits of the Murchison Technology Metals Project (MTMP) and the growing awareness of the emerging Vanadium Redox Flow Battery (VRFB) market.
Funds raised will be allocated towards advancing the MTMP towards construction readiness, as well as progressing financing and customer engagement discussions.
Support transition towards net-zero
TMT managing director Ian Prentice said: “We are extremely pleased to have the ongoing support of Resource Capital Funds.
“In our opinion, the investment from RCF VII further endorses the high-quality nature of our vanadium asset and gives us great confidence as we progress the MTMP towards development.
“In addition, we are very pleased to welcome a number of new strategic and institutional shareholders to our register and acknowledge the support received from existing strategic and institutional investors, which ensured robust demand for the placement.
“The high-quality TMT team maintains a clear focus on the timely and efficient development of the MTMP to the benefit of all stakeholders and to deliver a secure, reliable supply of high purity vanadium pentoxide to support the global transition towards net-zero.”
Placement summary
Bridge Street Capital Partners Pty Ltd and Ashanti Capital Pty Ltd acted as joint lead managers for the placement.
The placement issue price of $0.28 per share represents a discount of 16.2% to the 15-day VWAP of $0.334 per share and a 13.8% discount to TMT’s last close price of $0.325 per share on May 19, 2023.
Use of funds
Placement funds will be used to progress the development of the MTMP towards construction readiness, with a range of early works activities to be completed by the TMT project team.
Activities to be completed in parallel with these workstreams include the continued progression of the permitting and approvals pathways, and the progression of financing, product marketing and customer engagement discussions.