Perpetual raises funds to advance rare earth and lithium projects

Perpetual has received firm commitments to raise at least $1.03m
Directors to participate for at least $70,000 of the overall placement
Proceeds to be used to advance the Raptor REE project and the Isabella lithium project

Special report: Perpetual Resources is looking to raise $1.03m through a placement of more than 114m fully paid shares to advance exploration projects in Minas Gerais, Brazil.

Recent exploration results at Perpetual Resources’ (ASX:PEC) Raptor project have added more weight to the company’s belief the asset could host a significant Caldeira-style ionic adsorption clay-hosted REE deposit.

Up to 5m at 5591 parts per million total rare earth oxides were intersected in drilling earlier this month, with 35% NdPr content.

Over at PEC’s newly acquired Isabella project, wedged between Sigma Lithium’s monster 93.4Mt Grota Do Cirilo project and Atlas Lithium’s flagship Das Neves asset, sampled rock chips have returned up to 5.7% Li2O.

The explorer is looking to raise $1.03m from institutional, professional and sophisticated investors as well as directors of the company to advance exploration at both projects in Minas Gerais, Brazil, a well-established mining province with a mature mining labour pool, established infrastructure and hydroelectric power.

Placement to raise $1.03m

Firm commitments have been received to raise at least $1.03m through a placement of a total of 114,888,890 fully paid ordinary shares at an issue price of 0.9c.

A total of 96 million of the placement shares will be issued without shareholder approval utilising the company’s existing placement capacity under Listing Rule 7.1.

PEC intends to issue at least a further 18,888,890 shares (raising ~$170,000 before costs) to other select investors and directors of the company, with these shares proposed to be issued on the same terms as the placement shares and subject to shareholder approval at next annual general meeting.

Directors will put more skin in the game, applying for around $70,000 worth of shares.

The final quantum will be outlined in the notice of the meeting, which is targeted to be held in October.

Further results from the Raptor REE project are expected mid-September and results from the exploration program soon to kick off at the Isabella lithium project are expected to be received later this quarter.

This article was developed in collaboration with Perpetual 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.