Future Metals raising AUD 3.3m to fund exploration

Future Metals announced plans to undertake a non-renounceable entitlement issue on Friday to raise AUD 3.3m (£1.47m) before costs to fund drilling, exploration and study activities.

The AIM-traded firm said the offering would involve the issue of 110,554,930 new shares for three Australian cents each or 1.6p per depositary interest.

For every two new shares or depositary interests applied for and issued, shareholders would also get one free attaching Australian listed option exercisable for ten Australian cents on or before 11 June next year.

The board said it represented a 26.8% discount to the five-day volume weighted average price on the ASX up to 12 December.

Future Metals said the net proceeds generated from the offering would be directed towards drilling and other exploration activities at its recently acquired Eileen Bore copper-nickel-platinum group metals project.

Additionally, funds would be allocated to advance the pre-feasibility study (PFS) on the Panton Project following the completion and publication of the Panton scoping study.

“This fundraising will enable the company to engage in targeted exploration at its Eileen Bore Project through testing extensional targets, infill drilling and completing initial metallurgical testwork,” said managing director Jardee Kininmonth.

“Additionally, the funds will allow the company to commence the pre-feasibility study on its Panton Project, progressing what is one of the most compelling near-term development PGM projects in the Western world.

“The company has a very strong platform for growth in 2024 and we look forward to continuing to deliver on our strategy to prepare Panton for development, including potentially incorporating the nearby Eileen Bore into the overall development plan.”

At 1343 GMT, shares in Future Metals were up 15.93% at 1.57p.

Reporting by Josh White for Sharecast.com.