Azure Minerals chases $130m for Andover

SQM and Mark Creasy’s private investment group have backed Azure Minerals’ capital raising, which comes less than a week after the explorer revealed it had been approached for a friendly takeover. 

West Perth-based Azure Minerals looking to raise $130 million via a two-tranche institutional placement and share purchase plan to step up exploration efforts at its Andover lithium and nickel project in Western Australia’s Pilbara region.

The capital raising comes after an eventful few weeks for Azure, which was thrown into the spotlight earlier this month after revealing to the market its largest shareholder SQM had expressed an interest in buying the company.

Azure told the market that it had rejected these approaches in light of what Azure said was a 'rapidly evolving understanding' of the potential of the project. 

Springboarding off maiden drilling results posted from the project, Azure is seeking $100 million via an institutional placement with addition at $2.40 apiece. 

The offer price marks a 12.4 per cent discount on Azure's last close of $2.74.

A further placement raising $20 million will require shareholder approval and a $10 million share purchase plan will seek to bring the total raised for the project to $130 million. 

Mark Creasy's Yandal Investments, which holds a 13.37 per cent stake, has said it will back the raising. SQM will also participate to lift its stake from 19.98 per cent to 19.99 per cent. Both are Azure's major shareholders. 

A maiden mineral resource for Andover has been targeted in the first quarter of 2024, with a scoping study also expected to be finalised before the end of the year. 

Barrenjoey Markets and Canaccord Genuity (Australia) are joint lead managers and and underwriters to the Placement. 

K&L Gates is legal adviser to the company. 

Azure shares last changed hands at $2.74 and are up some 460 per cent since the start of June.