Podium’s raising $6.6m to keep Parks Reef development moving onward and upward
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Podium is raising up to $6.6m to fund ongoing development of its Parks Reef platinum group metals project in Western Australia’s Mid-West region.
The first $2m is pretty much in the bag, with new and existing sophisticated investors having already committed to subscribing for about 9.1 million shares priced at 22c each, a 20% discount to the 10-day volume weighted average price.
Once this is completed, Podium Minerals (ASX:POD) will offer existing shareholders the opportunity to subscribe for one share at the same price for every 15 shares held to raise the remaining $4.6m.
Proceeds from the capital raising will be used to support delivery of a new resource estimate – expected early in the fourth quarter of this year – that will include results from the Stage 9, 10 and central zone drill programs.
Results from these programs have been encouraging to say the least with Stage 10 demonstrating a 100% success rate in intersecting the PGM reef to date.
It will also be used to progress the processing and metallurgical development pathway.
Over the past six months, Podium has seen some significant progress at Parks Reef with deep drilling demonstrating that the orebody continues at depth to at least 500m below surface with several high-grade zones intersected within the proven 15km strike length to date.
Assays are also pending for the now concluded Stage 9 and 10 drill programs, which are expected to support the conversion of at least part of the Exploration Target of between 70Mt and 75Mt at 1.2g/t to 1.6g/t PGM for 2.7Moz to 3.8Moz into resources.
Success in this area will be a boost to the current resource estimate of 2.8Moz 3E PGM.
And if that wasn’t enough, the company has completed assays of historical holes for high-value rhodium and iridium, the former of which is one world’s rarest and most valuable metals that commands a price of about US$14,000/oz.
Notable results include 4m at 1.92g/t 3E PGM, 0.14g/t rhodium and 0.08g/t iridium from 28m and are expected to enable an upgrade of the resource to a 5E PGM – adding even more value to Podium’s already valuable resource.
Metallurgical test work is also continuing to identify a preferred processing route for 5E PGM with copper and nickel by-products.
“The Podium team has been diligently progressing the necessary steps required to realise the world-class potential of the Parks Reefs Project and momentum is building across several workstreams,” managing director Sam Rodda said.
He added that ageing South African mines and sanctions on Russian production meant that Parks Reefs’ location in mining friendly Western Australia offered the opportunity to develop the first PGM mine in Australia and provide a sustainable and reliable new source of PGM supply to global customers.
“In addition to global PGM supply uncertainty, the demand outlook for PGM’s looks strong due to their importance as a catalyst in the development of hydrogen energy,” Rodda noted.
“The rapid shift underway towards a decarbonized economy is driving investment in proposed green hydrogen production facilities in Western Australia and the location of Parks Reef may yet prove to be highly advantageous to these facilities.
“The funds raised from this placement and entitlement offer will allow the company to continue the momentum from the last 6 months of successful progress.
“Continuing to understand our high-grade zones in the next resource model as well as adding significant ounces will help inform and support future phases of drilling as we look to grow our 5E PGM reef at depth and plan tight-space infill drilling to build and deliver an upgrade in our resource and allow geological confidence in previously identified high-grade zones.”
This article was developed in collaboration with Podium Minerals, 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.