- Podium Minerals (POD) is looking to raise $1 million to advance its Parks Reef PGM Project in Western Australia
- This $1 million will be raised through a $500,000 placement and a $500,000 share purchase plan
- In regards to the placement, a total of 31.25 million shares will be issued to sophisticated investors at a price of 1.6 cents per share
- For the share purchase plan, eligible shareholders will have the opportunity to purchase up to $30,000 worth of new shares
- However, Directors have the right to scale back or increase the size of it
- Podium Minerals has ended the day down 23.1 per cent with shares trading for 2 cents each
Podium Minerals (POD) is looking to raise $1 million to advance its Parks Reef PGM Project in Western Australia.
This $1 million will be raised through a $500,000 placement and a $500,000 share purchase plan.
A total of 31.25 million shares will be issued to qualified sophisticated investors at a price of 1.6 cents per share.
This price represents a 38 per cent discount to the last traded closing price of 2.6 cents on May 27, and a 24 per cent discount to the 15-day volume-weighted average price.
Shares under the placement are expected to settle on or around June 4.
Share Purchase Plan
The remaining $500,000 will be raised through a share purchase plan which will see eligible shareholders purchase up to $30,000 worth of shares.
Shares will be priced the same as the placement and those participating will not incur any brokerage or transaction costs.
If the share purchase plan is oversubscribed then Directors have the right to scale back applications. The Directors also have the right to increase the size of the share purchase plan.
The share purchase plan will open on June 9, close on June 26, and shares will be issued no later than July 7.
Use of funds
As stated before, Podium Minerals will use the $1 million to advance its Parks Reef PGM Project.
The project is made up of a zone of PGM (platinum group minerals) -gold-base metal mineralisation that extends more than 15 kilometres in length.
Previous work completed by Podium Minerals has outlined an inferred mineral resource of 1.14 million ounces of combined platinum, palladium and gold, and 37,000 tonnes of copper.
This money will help the company continue systematic drilling across the 15 kilometre strike length, and it will also be used for a scoping study to define a project development plan.
Podium Minerals also has the opportunity to provide further funding for the work programs associated with its investment in EV Metals Group.
The company currently holds 16.4 million shares in EV Metals Group, representing an interest of 17 per cent.
EV Metals owes Podium Minerals $707,000 for its share of joint tenement costs and it has advised the company that it is confident of concluding a significant fund raising that will allow repayment of these funds.
Podium Minerals has ended the day down 23.1 per cent with shares trading for 2 cents each in a $4.217 million market cap.