• Impact Minerals raising up to $5.2m through a two-for-seven rights issue priced at 0.6c per share ($0.006)
  • Proceeds will fund the development of the Lake Hope HPA project and exploration at Arkun and Broken Hill
  • Raising expected to position company for next stage of growth

 

Special Report: Impact Minerals is looking to raise up to $5.2m through a two-for-seven renounceable rights issue priced at 0.6c per share to fund exploration at the Arkun and Broken Hill projects.

Proceeds from the rights issue will also be used to help develop the Lake Hope high purity alumina project, which is the subject of a pre-feasibility study that is due for completion in the next few months.

Impact Minerals (ASX:IPT) is also planning to carry out drill targeting and planning at Arkun during Q2 2025.

The rights issue is priced at a 43.4% discount to the 90-day volume weighted average price of 1.06c with company directors indicating that they intend to participate in the raising.

Additionally, shareholders will receive one free attaching listed option exercisable at 1.5c and expiring in 2.5 years for every two shares that they subscribe for.

 

Pivotal moment

“This equity raising marks a pivotal moment for the company and its shareholders,” chairman Peter Unsworth said.

“The Lake Hope pre-feasibility study (PFS) is now in its final phase, following the successful completion of crucial test work that, whilst delayed, has ultimately delivered the results we needed.

“With these positive results in hand, we are now in a position to complete the PFS and take the next steps towards commercialisation.

“To achieve this, we are raising equity capital through a renounceable rights issue, ensuring that all shareholders, not just professional and sophisticated investors, have the opportunity to participate in this critical phase of the company’s growth.

“This is the first time since acquiring the Lake Hope high purity alumina (HPA) project that an equity raising has been extended to all shareholders, and we believe it is the fairest way to support our loyal shareholders as we move forward.

“We would also encourage new investors to participate by purchasing shares before the close of market on March 4, 2025, in order to be on the shareholder register by the record date of March 5, 2025.

“The board strongly believes that the company is currently undervalued, particularly given the significant progress we have made at Lake Hope and the broader global demand for high purity alumina (HPA).

“Over the past eight months, our share price has declined along with much of the junior resources market, but our fundamentals remain strong.

“This rights issue allows shareholders to increase their exposure by subscribing for new shares at a highly attractive discount, as we progress towards production.

“In addition to raising capital for our key projects, the board believes that this capital raising positions the company for the next stage of its growth and ensures that all shareholders benefit from the future success of the company.”

 

HPA potential

IPT’s Lake Hope project has a measured resource of 730,000t grading 25.8% alumina, or 189,000t of contained alumina that grants it very high levels of confidence that it will be capable of supporting a proposed 10,000tpa HPA plant for 15 years.

This resource will also underpin a maiden probable or proven reserve subject to ongoing mining studies, test work and economic studies to be completed as part of the PFS.

An earlier scoping study had outlined attractive economics for a proposed 10,000tpa HPA plant including net present value of $1.3bn and one of the world’s lowest operating costs at  US$5000 per tonne which compares favourably with those reported by other ASX-listed HPA hopefuls.

4N HPA (99.99% purity alumina) currently commands a price of more than US$20,000/t.

 

 

 

This article was developed in collaboration with Impact Minerals, 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.

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