Gallium confidence fuels Nimy’s heavily oversubscribed $4.9m capital raising

• Nimy Resources raises $4.9m through oversubscribed share purchase plan
• Block 3 gallium discovery drives strong investor confidence at Mons project
• Sampling underway with maiden JORC resource for Block 3 due imminently

Special Report: Shareholders have demonstrated their confidence in Nimy Resources and its Mons critical minerals project in WA by raising almost $4.9m through a greatly oversubscribed share purchase plan.

The company had received applications exceeding $5.43m million worth of shares for the SPP, which had offered its shareholders the opportunity to subscribe for up to $30,000 worth of shares priced at 6c each.

However, it was required to scale-back the offering to 30% of the 271,510,124 shares on issue in line with regulations governing them.

Even this cut-down to $4.887m greatly exceeds the $2.5m that Nimy Resources (ASX:NIM) had originally sought, demonstrating the strong confidence in the Block 3 gallium discovery within the Mons project.

“The exceptionally strong result reflects investors’ confidence in our Block 3 gallium discovery, which also hosts rare earths, as a well as the exploration upside at our base metals projects,” managing director Luke Hampson said.

“We are well on the way to completing the maiden JORC gallium resource and we have ongoing exploration programs planned for gallium and base metals.

“The proceeds of this highly successful SPP will ensure we are fully funded to maximise these opportunities in a timely manner.”

Mons project

The Mons project covers 3004km2 of the Mons greenstone belt, just north of Southern Cross and 370km northeast of Perth.

While exploration carried out by the company since 2022 had uncovered anomalous levels of bismuth, molybdenum, silver, gold, rare earth elements, lithium, nickel, copper, cobalt and iron ore, the project really started to pique interest with the discovery of gallium at the Block 3 prospect.

Drilling at the prospect has consistently delivered grades above 100g/t of gallium, which is prized for its use in semiconductors, transistors, LEDs, computer chips and defence applications.

This is particularly true in light of Chinese export restrictions that have imposed on the critical mineral.

NIM recently started extensive geochemical sampling at the Mons project to extend mineralised zones across known and underexplored targets and expects to release Block 3 maiden resource imminently.

It also plans to start three high resolution airborne magnetic surveys in late October to seek extensions of the high-grade gallium footprint at Block 3, enable interpretation and modelling of the Masson copper-nickel-PGE mineralisation and the Sneaky Squirrel copper-zinc mineralisation.

This article was developed in collaboration with Nimy Resources, 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.