- Essential Metals (ESS) plans to raise $5 million via a placement to advance its Pioneer Dome Lithium Project in Western Australia
- The funds will support additional drilling and exploration work at the project as well as the commencement of potential feasibility studies
- ESS received firm commitments from investors for the placement, which will comprise the issue of 40 million shares at 12.5 cents each
- The four directors of the company have also made commitments to participate in the placement, totalling $150,000, subject to shareholder approval
- Shares are trading 3.7 per cent higher at 14 cents apiece at 11:15am AEST
Essential Metals (ESS) is planning to raise $5 million via a placement to fund the advancement of its Pioneer Dome Lithium Project in Western Australia.
The company has received firm commitments from institutional and sophisticated investors for the placement which will comprise the issue of 40 million shares at 12.5 cents each.
Additionally, the four directors of the company have made commitments to participate in the placement, totalling $150,000, subject to shareholder approval.
The funds are set to go towards accelerating work at Essential Metal’s wholly owned Pioneer Dome Project which is located south of Kalgoorlie.
ESS is planning additional drilling at the project to follow up results from the current drilling program, as well as expand exploration activities.
Moreover, the company said once lithium mineral resources are of a sufficient size, it plans to commence feasibility studies.
Managing Director Tim Spenser said the placement is a strong vote of confidence in the company’s project.
“We are delighted to welcome a number of new investment funds and family offices to the Essential Metals register through this placement, with the funds providing the company with a robust balance sheet to advance our lithium growth strategy.”
Shares were trading 3.7 per cent higher at 14 cents apiece at 11:15am AEST.