$2.5M Placement Completed

Pivotal Metals Limited (ASX:PVT) (‘Pivotal’ or the ‘Company’) is pleased to advise it has received oversubscriptions and firm commitments for a $2.5 million placement (Placement) at $0.016 per share, being a 5.6% discount to the 5 day VWAP. The offer was oversubscribed and scale backs were applied.

Highlights

• Firm commitments for $2.5m Placement received, endorsing the value proposition in Pivotal’s 100% owned Quebec Cu-Ni-PGM projects.
• Placement combined with existing cash to:
  • Redeem $1m of convertible notes, which were subject to either discounted conversion, or repayment by 14 March 2024.
  • Execute on 2024 exploration work program which includes 8,000 diamond drilling, geophysics, metallurgical testwork and a resource update.
  • Fully fund ‘non flow-through’ qualifying expenditure into 2025.
• Introduction of new funds and a strategic high net worth investor.
• All Directors participated in the Placement for a total scaled back allocation of $235k (subject to shareholder approval).

The Company was delighted to work with Morgans Financial Ltd as Lead Manager for the Placement, welcoming new interest in the Company’s assets and endeavours from its extensive client base.

Managing Director, Mr Fairhall said:

“This successful placement sets Pivotal up for an exciting 2024. Early repayment of the convertible note prevents the overhang of dilutive equity conversions, and the decision to replace that note with strong primary equity demand was a purposeful one. Allocation of the Placement was focussed on high-net-worth investors and long-term holders of the Company’s shares, to strengthen the Company’s position and register.

With a very strong balance sheet shareholders now enjoy a cleared path for extensive news flow through 2024, as Horden Lake is drilled and advanced for the first time in over a decade.

We remain very grateful to our loyal shareholders, particularly those that participated in the offer and warmly welcome our new shareholders.”

Catalysts and Work Program

The Company has commenced an extensive work program on its Canadian Cu-Ni-PGM projects, with the majority of focus on its 100% owned Horden Lake project, which already hosts a 28mt at 1.5% CuEq inferred and indicated resource¹.

The Horden Lake exploration program is of particular importance, as it represents:

• The first since Pivotal acquired Horden Lake in late-2022 from private ownership,
• The first on the project in over 10 years; and
• The first within an ASX listed company.

Key catalysts over the next 2-3 quarters are as follows:

• 8,000m diamond drilling on Horden Lake, targeting grade and tonnage upside.
• Downhole EM survey at Horden Lake, targeting massive sulphide extensions below open mineralisation.
• Metallurgical testwork to optimise a flowsheet for maximum net smelter return from contained metals.
• Horden Lake resource update.
• Geophysics results from BAGB surveys recently completed, and ongoing interpretation and targeting.

Figure 1: Pivotal Metals work program and news flow timeline

Refer to the Company’s ASX announcement dated 3 October 2023 “Exploration and Development Work Program for Quebec Projects” for additional information.

Placement Details

As of the date of this release, the Company has received firm commitments to a raise $2.5m through the issuance of 156,250,000 new shares at $0.016/share; representing a 5.6% discount to the 5 day VWAP and 20% discount to the last traded share price on 23 November 2023.

The shares will be issued in two tranches. Tranche 1 will comprise the issuance of 132,187,500 shares which fall within the existing capacity under ASX Listing Rules 7.1 and 7.1A, approved at the Company’s AGM on 21 November 2023. Settlement of Tranche 1 is expected to take place on or around 4 December 2023, with allotment and quotation of new shares expected to occur on 5 December 2023.

Click here for the full ASX Release

This article includes content from Pivotal Metals, 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.