Impact Minerals (ASX: IPT) is pleased to announce that it is undertaking a 2 for 7 renounceable rights issue (“Rights Issue”) at $0.006 per share to raise up to approximately $5.2 million (before costs).
Announcement Highlights
- 2 for 7 renounceable Rights Issue to raise up to $5.2 million (before costs)
- Attractively priced at $0.006 per share
- Discount of 33% to the last closing price of $0.009 and 43.4% to the 90 day VWAP of $0.0106
- For every 2 new shares subscribed for, shareholders will receive 1 free attaching new option
- New options will have an exercise price of $0.015, a term of 2.5 years and will be quoted
- Shareholders can trade their rights and apply for additional shares and options
- Rights trading commences on 4 March 2025
- The Directors have indicated an intention to participate in the Rights Issue
- Funds to be used to undertake exploration of the Arkun Project and Broken Hill Project, and to develop the Lake Hope High Purity Alumina (HPA) Project
“This equity raising marks a pivotal moment for the Company and its shareholders. The Lake Hope Pre-Feasibility Study (PFS) is now in its final phase, following the successful completion of crucial test work that, whilst delayed, has ultimately delivered the results we needed. With these positive results in hand, we are now in a position to complete the PFS and take the next steps towards commercialisation. To achieve this, we are raising equity capital through a renounceable Rights Issue, ensuring that all shareholders, not just professional and sophisticated investors, have the opportunity to participate in this critical phase of the Company’s growth. This is the first time since acquiring the Lake Hope High Purity Alumina (HPA) Project that an equity raising has been extended to all shareholders, and we believe it is the fairest way to support our loyal shareholders as we move forward.
Chairman Peter Unsworth said:
We would also encourage new investors to participate by purchasing shares before the close of market on 4 March 2025 in order to be on the shareholder register by the record date of 5 March 2025.
The Board strongly believes that the Company is currently undervalued, particularly given the significant progress we have made at Lake Hope and the broader global demand for High Purity Alumina (HPA). Over the past eight months, our share price has declined along with much of the junior resources market, but our fundamentals remain strong. This Rights Issue allows shareholders to increase their exposure by subscribing for new shares at a highly attractive discount, as we progress towards production. In addition to raising capital for our key projects, the Board believes that this capital raising positions the Company for the next stage of its growth and ensures that all shareholders benefit from the future success of the Company.”
Congratulations to Dr Mike Jones, the board and the team at Impact Minerals for reaching this milestone.
Read the full Impact Minerals Company Update here.
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