Tony Sage's European Lithium and fellow WA company Marvel Gold have secured funds to progress their projects in Austria and Mali.
European Lithium, based in West Leederville, says it has received commitments to raise $6.5 million from a share placement to complete a definitive feasibility study of its Wolfsberg project in Austria, as well as fund continued exploration and working capital.
Mr Sage, who was appointed non-executive chair of the company in 2016, said results from drilling and metallurgical work were almost complete and would be released to the market in September.
“It’s fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS,” he said.
The placement is priced at 6.25 cents per share and is being led by NSW-based Evolution Capital Advisors.
Investors will also receive one listed option for every 2 shares issued, exercisable at 7.5 cents and expiring in April 2024.
Meanwhile, West Perth-based Marvel Gold is raising $4.2 million from a share placement, which includes investments from global institutions Deutsche Balaton and Delphi. Together, they will hold 11.6 per cent of Marvel’s issued capital.
The placement is priced at 6 cents per share, representing an 11 per cent premium to Marvel’s last closing price of 5.4 cents (on August 5).
Managing director Phil Hoskins said the placement price demonstrated the value potential in Marvel’s gold and graphite projects.
He said the value of Marvel’s graphite assets would soon be unlocked with the proposed spinout of its Chilalo project in Tanzania. It is operated by Marvel subsidiary Evolution Energy Minerals, which intends to list on the ASX.
Marvel will use the placement proceeds to complete the demerger, as well as fund continued exploration in Mali, where the business has five gold projects.