The company received commitments for a placement of up to 19,445,833 fully paid ordinary shares at a price of 11 cents per share to raise approximately $2,139,042 before costs.
The placement price is equal to the last closing price of Technology Metals’ shares on January 28, 2020, and a 15% discount to the 30-day volume weighted average price.
The fully subscribed placement was well-supported and the company welcomes strategic domestic and international investors on to the register who have significant investments and operational experience within the rapidly emerging battery metals markets.
Funds raised will be used to progress the development of the large, long-life, low-cost Gabanintha Vanadium Project and for general working capital.
The company completed a DFS into the development of Gabanintha in August 2019 and is progressing offtake and financing discussions.
TMT directors intend to participate for up to $60,500 in the placement for up to 550,000 fully paid ordinary shares.
This participation will be subject to shareholder approval at an upcoming general meeting of shareholders.
The placement shares are intended to be issued under the company’s current ASX Listing Rule 7.1 and 7.1A capacity.
The 6,725,708 shares to be issued under 7.1A are conditional on the minimum pricing condition under ASX Listing Rule 7.1A.3 being satisfied.
Where this does not occur, the issue of those shares will be subject to shareholder approval at the general meeting.
TMT investors have responded positively with shares up almost 18% to an intra-day high of 13.5 cents, an increase from 11 cents on January 28.