Subiaco-based tungsten and molybdenum explorer Vital Metals Ltd has raised $6.6 million through a placement to partially fund a feasibility study of its Watershed project, the company has announced.
Subiaco-based tungsten and molybdenum explorer Vital Metals Ltd has raised $6.6 million through a placement to partially fund a feasibility study of its Watershed project, the company has announced.
Placing 11 million new shares at 60 cents each to raise the money, the company will also raise $6.9 million through a non-renounceable rights issue, offering one new share for every eight held one one free option for every two held.
The company will issue 11.5 million shares and 5.8 million options, exerciseable at 80 cents, under the plan.
The full text of a company announcement is pasted below
Vital Metals Ltd (ASX: VML) has attracted strong institutional and investor support through a placement to raise $6,600,000 (before costs) in conjunction with a fully underwritten rights issue to fund the feasibility study of its Watershed Tungsten Project and provide working capital.
Under the placement 11 million new, fully paid ordinary shares will be issued to institutional and sophisticated clients of Bell Potter Securities Limited at a price of 60 cents each.
The Company will also raise a further $6,903,750 (before costs) through a fully underwritten, pro-rata, non-renounceable rights issue pursuant to a prospectus lodged with the Australian Securities and Investments Commission on Friday 29 June, 2007.
The Company is offering 11,506,250 shares at 60 cents each on the basis of one new share for every 8 shares held at the Record Date, together with 5,753,125 new options on the basis of one free attaching new option for every 2 new shares exercisable at 80 cents on 31 August, 2008. Application will be made to the ASX for listing of these options.
Executive Chairman Mr Bill Ryan welcomed the Company's new shareholders and said the funds raised as a result of their strong support would be applied towards completion of the Watershed Project's Feasibility Study and for general working capital purposes.
"Watershed is a major tungsten deposit by world standards and provides a firm basis for Vital Metals to continue with its plans to attempt to develop a mine to produce scheelite concentrates containing some 4,000 tonnes of tungsten a year with a long-term mine life," he said.
"The project is at a crucial phase of its development and your Directors hold strong hopes for its future."
Terms of Reference (ToR) for the formal Environmental Impact Statement for the project in far North Queensland were finalised late last week, enabling the roll-out of the remaining impact assessment studies to get underway.