Meteoric to raise $25m, appoints chairman

Perth-based explorer Meteoric Resources has appointed a new chairman and received commitments to raise $25 million to advance its rare earth elements project in Brazil.

Under the placement, Meteoric will issue shares at 12.5 cents apiece, which represents a 13.8 per cent discount to its close price on March 30.

In an announcement on the ASX, Meteoric said the placement had been “strongly supported” by Australian and international institutional investors.

Funds generated will be used to accelerate exploration and development of the Caldeira rare earth elements project in Brazil.

In December 2022, Meteoric entered into a binding agreement to acquire the Caldeira project from Brazilian company Togni S/A Refractory Materials.

The capital raise is subject to finalisation of the $7.5 million payment for the Caldeira rare earths project, expected to occur next week.

Evolution Capital, Petra Capital, Euroz Hartleys and Sprott Capital are the co-managers for the placement.

Meanwhile, the company appointed Andrew Tunks as its executive chairman after outgoing chair Patrick Burke stepped down to non-executive director.

Mr Tunks was previously a non-executive director for the company.

The appointment comes just weeks after Nicholas Holthouse was announced the company’s new chief executive with a focus on leading the Brazilian ventures.

Mr Tunks said the response to the capital raise had been fantastic.

“We are thrilled to have raised $25 million, which sees Meteoric fully funded to carry out our extensive programs planned for Caldeira throughout 2023,” he said.

At market close, Meteoric shares were down 13.79 per cent to trade at 12 cents.