Investors back Mt Monger’s $3m placement for Pomme REE exploration
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Investors have highlighted their confidence in Mt Monger’s newly acquired Pomme rare earths and niobium project in Quebec, Canada, by backing a $3m placement.
The company has received firm commitments from new and existing sophisticated and institutional investors, company employees and directors for the two tranche placement of up to 30 million shares priced at 10c per share.
This represents a 4.8% discount to the last traded price of 10.5c shares on 23 February 2023.
Proceeds from the placement will be used by Mt Monger Resources (ASX:MTM) to carry out its maiden diamond drilling at the project, which is known to host both REE and niobium with historical drilling returning exceptionally thick assays such as 508.3m at 0.43% total rare earth oxides (TREO) and 413 parts per million (ppm) Nb2O5 from downhole depth of 73.7m.
“We are very pleased with the strong level of demand for the placement which has validated our recently announced acquisition of the Pomme rare earth element and niobium project in Canada,” said managing director Lachlan Reynolds.
“Proceeds from the placement will enable the company to rapidly progress the drilling and metallurgical test work at the Pomme project, planning for which has already begun and will accelerate from early March when I travel to Quebec to progress our maiden drilling program.”
The first tranche of the placement will consist of the unconditional placement of up to 12.4 million shares to raise $1.24m while the second tranche of up to 17.6 million shares is subject to shareholder approval.
Shareholder approval will also be sought for the directors’ commitment to acquire $70,000 worth of shares and for the issue of one free attaching option exercisable at 25c and expiring on 26 November 2024 for every two shares subscribed.
Pomme is a known carbonatite intrusion with exceptional results from limited drilling carried out in 2012.
The project is also adjacent to the Montviel REE-Nb deposit (owned by original Pomme vendor Geomega Resources), which has an Indicated and Inferred Resource of 266Mt at 1.45% TREO and 0.14% Nb2O5.
Additionally, it is easily accessible by road and work there can be supported year-round from local towns.
This article was developed in collaboration with Mt Monger 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.