$4m raise caps busy start to 2023 for metals explorer

West Australian alumina explorer Impact Minerals (ASX: IPT) has received firm commitments for its $4 million capital raise, including $3 million from its largest shareholder, a German Family Office.

The placement of 333,333,333 shares at 1.2 cents each – a 5% premium to the 15-day volume-weighted average price – gives the company a cash balance of approximately $5 million.

Two of the firm’s largest shareholders, the Bunnenberg Family Office and ABC Beteiligungen – a subsidiary of Frankfurt-listed investment company Deutsche Balaton AG – tipped $3.25 million into the placement.

The remaining $750,000 was contributed by Ignite Equity, a Melbourne-based boutique corporate adviser specialising in cornerstone and lead-managed placements.

What’s the purpose of the placement?

According to Impact’s management, the funds will be used to accelerate the development of the advanced Lake Hope High Purity Alumina project, which is located 500 km southeast of Perth in the Tier 1 jurisdiction of Western Australia. 

Impact’s managing director, Dr Mike Jones, said the cash injection would also enable the production of final products that can be provided to potential customers for qualification testing.

“We have already made considerable strides in advancing the project, with just the final set of assays for the recently completed infill drilling left to complete our maiden resource estimate by the end of this quarter,” Jones said.

“We then intend to submit a Mining Lease application in the next quarter, in tandem with the feasibility studies. We are forging ahead at full speed, and these funds will allow us to maintain our momentum”.

What’s next?

The company recently announced it had the option to acquire an 80% interest in Lake Hope by completing a Pre-Feasibility Study on the project. It has now exercised that option, following the completion of due diligence.

As outlined in the binding term sheet agreement announced last month – and reported on Market Index previously – Impact will now pay $175,000 to the shareholders of Playa One Limited. They will also receive:

• 50 million fully paid ordinary shares (escrowed for 12 months), and

• 30 million unlisted options, exercisable at $1.125, vesting 12 months from the date of issue and expiring on 1 December 2025.

Following the completion of the pre-feasibility study, Impact can form a joint venture (JV) with Playa One shareholders. Upon the formation of a JV, Impact will acquire 80% interest in Playa One by issuing up to 120 million shares capped at a maximum value of $8 million.

The final step involves completing a definitive feasibility study, which will also be funded by Impact. Upon completion, Impact will issue Playa One shareholders up to 100 million shares, capped at a $10 million value, which is the final stage before evaluating a decision to mine.

Disclaimer: Market Index helps small-cap ASX-listed companies connect with Australian investors through clear and concise articles on key developments. Impact Minerals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.