MinRex is primed for lithium program as strategic investors back $13.5m placement
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Investors have demonstrated their support for MinRex and its plan to accelerate lithium-tin-tantalum exploration in the Pilbara by oversubscribing for a $13.5m placement.
Notably, this included a cornerstone investment of $6.8m from a strategic group of investors who are executives of Chinese and Australian mining groups involved in exploration, development, refining and processing of precious and battery metals, some of whom were early-stage seed investors in Global Lithium.
Proceeds from the placement will be used by MinRex Resources (ASX:MRR) to fast-track exploration including 25,000m of drilling over its Pilbara project and continued exploration of its other WA and New South Wales gold, precious and base metal projects.
The placement of shares priced at 6.2c each, which represents a 16.2% discount to MRR’s 15-day volume weighted average price, includes one free attaching option exercisable at 10c within two years of issue for every two shares subscribed.
“This capital raising marks another important milestone in our journey to becoming the next lithium producer in Pilbara,” managing director George Karageorge said.
“The past six months has seen us complete an outstanding acquisition of highly prospective lithium-tin-tantalum projects, with the identification of extensive spodumene and lepidolite from surface pegmatites.
“The successful completion of the Placement will allow MinRex to increase our exploration momentum during this year with the added benefit of a cash at bank of almost $19M by June this year”
“MinRex has also invested in building the technical team with geologist Mr Ian Shackleton who was one of the founders in the Global Lithium Archer Deposit joining the Company in April.”
Drilling approvals for the lithium exploration campaign are currently underway with the company expecting to start ground proofing and drill pad construction in May.
MinRex plans to start the drilling with an 8,000m program over outcropping spodumene bearing pegmatites in the Tambourah North and Coondina projects during June to August.
It will then move on to drill another 8,000m over at the Sisters and Shaw River Projects in August to October 2022 before infill and resource extension drilling totalling 9,000m is carried out over delineated lithium mineralised zones in the last quarter of 2022.
Additional geological mapping and rock chip sampling will be undertaken over projects before drilling commences while further extensional drilling will be planned once all 3D geological models have been established for the recommencement of RC drilling early in 2023.
This article was developed in collaboration with MinRex 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.