The placement was strongly supported by existing investors and several new high net worth and institutional investors. Pic via Getty Images
Cashed up: NAE raises up to $2.5m for lithium drilling in the Pilbara
Mining
share
- Firm commitments received for $1.96m share placement, directors to subscribe for another $550,000 worth of shares
- Funds raised from the placement will enable NAE to execute lithium drilling program
- NAE is targeting LCT pegmatites similar to other Central Pilbara spodumene-rich deposits
New Age Exploration has raised up to $2.5m to drill a bunch of targets at its highly prospective but underexplored Central Pilbara lithium projects.
The explorer’s Central Pilbara projects are strategically located in the Mallina – Whim Creek Basin of the Pilbara Craton, rich in exploration potential in close proximity to the world-class Wodgina and Pilgangoora lithium mining operations. Despite sitting amongst such company, NAE’s grounds remain relatively under explored.
Multiple high priority lithium, caesium, tantalum (LCT) pegmatite targets have been previously identified by New Age Exploration (ASX:NAE) for follow up drilling, with a phase two program underway to extend and refine the high priority targets in the lead up to drilling.
Now with $1.96m in the bank following a strongly supported share placement at 0.55c per share, NAE says it is well placed to target the various LCT pegmatites with drilling, which boasts similarities to the spodumene rich deposits of Wodgina, Pilgangoora and Andover.
Placement details
The placement price of 0.55c per new share represents a 31% discount to the last traded price on Friday September 15 (0.8c) and a 21% discount to the 15-day VWAP price (0.7c).
NAE directors will also seek to participate in a further capital raising on the same terms as the placement, subject to necessary regulatory approvals.
If all goes to plan, they will subscribe for up to an aggregate of 100m fully paid ordinary shares (with free attaching options) to raise up to a further $550,000.
The placement to directors will be subject to shareholder approval at the forthcoming AGM.
“We are very pleased with the substantial interest from strategic investors for placement,” NAE executive director Joshua Wellisch said.
“This funding underpins the exploration in the lead up to the planned drilling of our high-priority LCT lithium pegmatite targets.”
What else is happening?
NAE is currently collecting a further ~1,200 samples across the Bullock Well and Quartz Hill project areas.
These will be submitted for assay in addition to ∼1,000 samples collected in the phase one soil sampling program, with the results used to assess the interpreted margin of the fertile granite suites associated with LCT pegmatites.
High priority targets will be refined and prioritised in the lead up to a planned drilling program to begin following all required approvals.
This article was developed in collaboration with New Age Exploration, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
