• Meteoric has raised $27.5m via an institutional placement
  • A further $5m is being raised at the same offer price via a non-underwritten SPP
  • Money raised will be allocated towards development of the Caldeira project in Brazil

 

Special report: Meteoric Resources will be placed with a pro-forma 30 June cash balance of ~$41m upon settlement of a $27.5m placement, setting it up to accelerate the development of Caldeira, one of the world’s best rare earths discoveries.

The Tolga Kumova-backed Meteoric Resources (ASX:MEI) was a top ASX performer in 2023 following the uncovering of one of the world’s highest grade ionic clay rare earth deposits at a family owned mine in Brazil’s Minas Gerais state.

With an enormous resource of 619Mt at 2,538ppm total rare earth oxides, and further expansion on the cards, MEI CEO Nick Holthouse says Caldeira is likely to be operating at a healthy margin even with the current low pricing cycles coming out of China.

After further study work, approvals and financing, the new scoping study presents the opportunity to make MEI the third significant ex-China producer of rare earth metals for EVs, defence, aviation and wind turbines – closely behind Australia’s Lynas (ASX:LYC) and America’s MP Materials; both of which include Gina Rinehart as a large shareholder.

 

Permitting and PFS underway

Today, the explorer announced the raising of $27.5m via an institutional placement at $0.11 per new share, with strong demand from domestic and international investors as well as existing shareholders.

It marks another important step in the development of Caldeira with permitting and a pre-feasibility study underway.

Upon settlement, MEI will be well capitalised with a pro-forma 30 June cash balance of ~$41 million and in a strong position to accelerate development of Caldeira.

The placement price represents an 8.3% discount to Meteoric’s last closing share price of $0.12 per share on Tuesday, July 23.

 

Well-capitalised to fund commissioning and ongoing exploration

“The strong demand received from both Australian and international institutional investors for this placement is testament to the Tier-1 nature of the Caldeira project,” CEO Nick Holthouse says.

“This placement de-risks Meteoric’s strategy and ensures we are well-capitalised to accelerate development including the completion of a PFS, commissioning of a demonstration plant, progression of key licenses and approvals and ongoing exploration and drilling activities.

“It provides us with significant runway to continue progressing options around alternative long-term financing solutions, including potential government grants and/or strategic partnerships.”

 

Opportunity for shareholders via $5m SPP

MEI is also offering existing eligible shareholders the opportunity to participate in this equity raising via a share purchase plan to raise a further $5m.

Eligible existing shareholders on the company’s share register at 7.00pm AEST on Thursday, 25 July will be offered the opportunity to apply for up to $30,000 worth of new shares at the same price as the placement.

Proceeds from the placement and SPP, together with existing cash, will be applied towards exploration and drilling, studies (including completion of a PFS and a DFS), construction, land acquisitions, progressing licencing and approvals, as well as corporate costs.

 

 

This article was developed in collaboration with Meteoric 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.

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