MTM to ramp up exploration

MTM Critical Metals plans to speed up exploration of its newly acquired West Arunta and Mukinbudin Niobium-REE tenement projects, after raising $5 million from investors. 

MTM secured both projects in December 2023, after taking complete ownership of Flash Metals. This resulted in MTM's share prices tripling from 2.1 cents per share to 6.3 cents per share prior to Christmas. 

The West Perth-based exploration company told the market it planned a $7 million capital raising to aid this process, along with pursuing future project development.

It received three granted exploration licences in West Arunta as part of the Flash Metals accquistion, located in the Pilbara, and sits close to sites operated by WA1 Resources and Encounter Resources. 

MTM said it had a firm commitment for a two-tranche placement of new shares, which would raise $5 million before costs, upon the issuing of 62.5 million fully paid ordinary shares, at a price of 8 cents per share.

Additionally, the company flagged its intent to conduct a non-renounceable pro-rata offer for eligible shareholders, which would raise around $2 million before costs. 

MTM managing director Lachlan Reynolds said demand for the placement was strong.

"On the back of the strong demand for the new shares and free attaching quoted options offered in the placement, we are pleased to be able to offer new shares to existing shareholders on the same terms as the placement through a non-renounceable rights issue," he said.

"The company intends to make available the shortfall from the entitlement offer to certain investors who were scaled back in the placement.

“Proceeds from the capital raise will allow the company to carry out exploration of its new and existingtenements and invest in the advancement of the Flash Joule technology.”

As of 3.06pm AEDST, MTM shares were down 13.91 per cent, at 9.9 cents per share.