$13.5M Placement Cornerstoned by Strategic Investors

$13.5M Placement Cornerstoned by Strategic Investors

Funds to fast-track exploration of Pilbara Lithium Projects with MinRex targeting 25,000m of drilling in the next 12 months

MinRex Resources Limited (ASX: MRR) (“MinRex” or “the Company”) is pleased to announce it has received firm commitments for a $13.5 million capital raising (Placement) to underpin the acceleration of MinRex’s Pilbara LithiumTin-Tantalum exploration strategy and continued exploration of its other WA and NSW gold, precious and base metal projects


HIGHLIGHTS
     
  • Firm commitments received for heavily oversubscribed $13.5 million capital raising at 6.2 cents with a 1:2 free attaching option (ex. $0.10, 2 yr term)
  • $6.8 million cornerstone investment received 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
  • MinRex now positioned to fast-track exploration activities, targeting 25,000m of drilling over its Pilbara Lithium-Tin-Tantalum Projects in the next 12 months and continued exploration of its other projects

The Placement was heavily oversubscribed and strongly supported by investors, including the introduction of a $6.8 million cornerstone group of investors who are executives of Chinese and Australian mining groups involved in exploration, development, refining and processing of precious and battery metals. The group includes some persons who were early-stage seed investors in Global Lithium Ltd (ASX:GL1).

The Placement was conducted at $0.062 per fully paid ordinary share (New Shares), representing a 16.2% discount to MinRex’s 15-day VWAP and last closing price of $0.074, together with free attaching options (ex. $0.10, 2 years) (New Options) on the basis of one option for every two shares subscribed for under the Placement, subject to shareholder approval. Accordingly, the Placement comprises the issue of:

     
  • 109,677,419 New Shares and 54,838,710 New Options to the cornerstone group of investors; and
  • 108,064,516 New Shares and 54,032,258 New Options to other sophisticated and professional investors.

All New Shares are to be issued under the Company’s existing placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A as follows: LR7.1 – 131,264,315 New Shares; LR7.1A – 86,477,620 New Shares. Allotment of New Shares, except for allotment to the cornerstone group, is anticipated to occur on Thursday, 28 April 2022. Allotment of New Shares to the cornerstone group is anticipated to occur on 1 June 2022. All New Options will be allotted to subscribers subject to prior shareholder approval, with a general meeting of shareholder expected to be held in early June 2022.

 MinRex Resources Managing Director, George Karageorge commented:

“This capital raising marks another important milestone in our journey to becoming the next lithium producer in Pilbara. 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. We look forward to furthering our relationships with our cornerstone investors given their experience in the exploration, development, refining and processing of precious and battery metals in Australia.

Finally, I would like to acknowledge the support of all new and current shareholders, who have demonstrated such support by their commitment to subscribe for $13.5 million under the Placement.”

Canaccord Genuity (Australia) Limited acted as the sole Lead Manager for the Placement. Capital raising fees of 6% on the proceeds raised under the Placement are payable to the Lead Manager, with 4% selling fees to be passed onto other brokers that participated. Ten (10) million New Options will also be issued to the Lead Manager (or its nominee), subject to shareholder approval.

A 6% introductory fee payable on subscriptions completed from cornerstone investors is also payable to Scott Li (or his nominee), to be settled by the issue of New Shares at the same price as under the Placement, subject to shareholder approval. If shareholder approval is not received within 3 months, then such fees are to be settled by MinRex in cash.

Funds raised from the Placement will be applied to exploration on MinRex’s Pilbara Lithium Projects, continuation of exploration on existing WA and NSW gold, precious and base metal projects and for general working capital requirements.

Pilbara Exploration Program

MinRex has finalised its planned exploration program over its Pilbara Lithium Projects and plans to drill up to 25,000m within the next 12 months as follows:

     
  • Drilling approvals already underway with 5x POW applications already registered.
  • Ground proofing and drill pad construction to commence in May.
  • RC drilling expected to commence over Tambourah North and Coondina Projects in June – August 2022. RC program currently targeting 8,000m over outcropping spodumene bearing pegmatites.
  • RC drilling expected to commence over Sisters and Shaw River Projects in August – October 2022. RC program currently targeting 8,000m over outcropping spodumene bearing pegmatites.
  • Additional geological mapping and rock chip sampling will be undertaken over Projects before drilling commences.
  • Infill and resource extension RC drilling over delineated Lithium mineralised zones expected to commence October – December 2022, targeting 9,000m of RC drilling with a view to defining new Lithium deposits.
  • Further extensional drilling to be planned once all 3D geological Models have been established for recommencement of RC drilling in early 2023.

This ASX announcement has been authorised for release by the Board of MinRex Resources Limited.

Click here for the full ASX Release

This article includes content from MinRex Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

MRR:AU
The Conversation (0)
Digital hexagons overlay construction site with an excavator and cloudy sky in the background.

Ekin Ober on Why AI Could Be Mining’s Most Valuable Tool Yet

For Ekin Ober, bringing generative artificial intelligence (AI) to the critical metals sector through her work at Aethos Labs wasn’t just about technological innovation — it reshaped how she thinks about strategy and sustainability in mining.

Now a principal at Kinterra Capital, Ober applies that broad, cross-disciplinary lens to investment decisions, emphasizing the importance of digital fluency, stakeholder alignment and long-term viability.

Her experience helps her identify operational bottlenecks and social license challenges early — essential in guiding assets like nickel and copper projects from concept to production.

Keep reading...Show less
Stacks of US$100 bills with upward-pointing wooden arrows.

Chris Berry: The West Must Invest in Refinement Now or Fall Further Behind

China’s grip on the battery metals sector has drawn increasing scrutiny in recent years as nations confront growing concerns around supply chain risk and resource security.

Through a blend of domestic output and aggressive overseas investment, particularly in Africa and South America, Chinese companies now command a significant share of upstream supply.

The country is responsible for roughly 60 percent of global rare earths production and controls over 70 percent of cobalt supply through its stakes in mines across the Democratic Republic of Congo.

Keep reading...Show less
Magnifying glass focusing on the Albemarle website logo.

Albemarle's Commitment to Sustainability Shines in New Report

As global demand for critical minerals intensifies, Albemarle (NYSE:ALB) continues to position itself as a global leader not only in lithium production but also in sustainable practices.

In its newly released 2024 sustainability report, titled “Values-Led, Purpose-Driven,” the company underscores its commitment to reducing its environmental footprint across six continents, supporting global supply chains and promoting human rights across operations.

From cutting freshwater intensity at its Chilean operations by 28 percent to procuring 24 percent of its electricity from renewable sources, Albemarle is striving to grow its energy storage business while keeping carbon emissions flat, as it translates ESG goals into action.

Keep reading...Show less
Metallic battery with a world map etched on it, against a dark background.

3 Key Themes from Fastmarkets' 2025 Lithium Supply & Battery Raw Materials Event

Market volatility, Chinese control, supply chain risk mitigation and financing emerged as some of the most prevalent themes at the 2025 Fastmarket’s Lithium Supply Battery Raw Materials (LBRM) conference in Las Vegas.

The event, which is in its 17th year, drew a crowd of roughly 1000 delegates, industry experts and analysts, to discuss the current landscape and future projections of the battery materials sector.

During his opening remarks, Fastmarkets CEO Raju Daswani highlighted the growth and maturation the battery raw materials sector has experienced.

Keep reading...Show less
Metals Australia (ASX:MLS)

Metals Australia


Keep reading...Show less

Latest Press Releases

Related News

×