Bell Potter Securities acted as lead manager to the placement. Pic via Getty Images.
Metal Hawk raises $1.2m to fast-track lithium-nickel and REE exploration
Mining
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Metal Hawk has received firm commitments from sophisticated investors to raise A$1.2 million (before costs) via a placement at $0.11 per share to accelerate exploration at its Yarmany nickel and lithium project and Fraser South REE project.
The issue price of $0.11 per new share represents a 15.4% discount to the closing price of Metal Hawk (ASX:MHK) shares of $0.13 on 19 July 2023 being the last trading day prior to the placement.
Notably, the company’s directors have agreed to subscribe for $50,000 of placement shares, subject to shareholder approval, which will be sought at a General Meeting (GM).
The upcoming programs will focus on the lithium and nickel potential at Yarmany, where there is a favourable setting for pegmatite-hosted lithium mineralisation and underexplored ultramafics.
Looking at known pegmatites at Yarmany
Metal Hawk recently secured an option to acquire the large scale Yarmany project in Western Australia’s Eastern Goldfields, where limited historical drilling has confirmed a favourable geological setting with potential for komatiite-hosted nickel sulphides and pegmatite-hosted lithium mineralisation.
“We are very pleased with the strong level of support from shareholders,” Metal Hawk MD Will Belbin said.
“We look forward to an exciting period for the company with lithium and nickel exploration ramping up at Yarmany and the next phase of drilling at Fraser South due to commence shortly.”
The tenements, while highly prospective for both nickel and lithium mineralisation, have also received only limited, mostly superficial exploration for pegmatite-hosted lithium-caesium-tantalum (LCT) mineralisation.
The company plans to begin drilling activities in the second half of 2023.
The next phase of exploration at Fraser South
Since purchasing IGO’s 51% JV interest of the Fraser South project last month, the company has completed a maiden drilling program which identified clay-hosted REE mineralisation, including:
- 26m at 1526ppm TREO from 16m to EOH, including 8m at 3101ppm TREO from 32m (FSAC016);
- 13m at 1202ppm TREO from 36m, including 5m at 2298ppm TREO from 44m (FSAC015);
- 8m at 1087ppm TREO from 36m and 10m at 1781ppm TREO from 52m (FSAC018); and
- 19m at 816ppm TREO from 8m, including 3m at 2840ppm TREO from 24m to EOH (FSAC019).
The plan now is to do some initial metallurgical test work as well as following up with a more substantial stage-2 drilling program.
This article was developed in collaboration with Metal Hawk Limited, 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.
