$3 Million Placement To Fund Pomme REE-Nb Project Exploration

Mt Monger Resources Limited (ASX:MTM) (Mt Monger or the Company) is pleased to announce that it has received firm commitments from professional and sophisticated investors pursuant to section 708 of the Corporations Act 2001 (Cth) for a two tranche placement to raise up to $3.0 million via the issue of up to 30.0 million fully paid ordinary shares (Shares) at an issue price of $0.10 per Share (Placement).

Highlights:

• Firm commitments received for a two-tranche Placement of new shares at $0.10 per Share to raise gross proceeds of up to $3.0 million (before costs)
• Strong support from new and existing sophisticated and institutional investors, employees of Mt Monger and the Board of Directors
• Proceeds from the Placement will primarily be applied towards the Company’s maiden diamond drill program at its recently acquired Pomme rare earth element (REE) and niobium (Nb) project, located in Québec, Canada
• Pomme is host to a known carbonatite-hosted mineralisation with two historic drill holes (completed 2012), including:
  • MVX-12-01 - 508.3m @ 0.43% TREO, 413ppm Nb2O5 and 1.48% P2O5, from 73.7m
    
    • Incl.: 7.5m @ 1.28% TREO, 499ppm Nb2O5 and 1.43% P2O5 from 319.5m
    • 16.5m @ 1.44% TREO, 92ppm Nb2O5 and 0.46% P2O5 from 403.5m
    • 7.5m @ 1.77% TREO, 183ppm Nb2O5 and 0.59% P2O5 from 483m
  • MVP-12-02B - 478.1m @ 0.12% TREO, 340 ppm Nb2O5 and 2.14% P2O5, from 25.9m to EOH.

Commenting on the Placement, Managing Director, Lachlan Reynolds said:

“We are very pleased with the strong level of demand for the Placement which has validated our recently announced acquisition of the Pomme rare earth element and niobium project in Canada.

Proceeds from the placement will enable the Company to rapidly progress the drilling and metallurgical test work at the Pomme Project, planning for which has already begun and will accelerate from early March when I travel to site to progress our maiden drilling program.

We welcome new shareholders to the Company and thank all of our existing shareholders for their support as we look to advance our critical metals focused exploration program in Canada and Western Australia.”

Placement details

The Placement will be undertaken in two-tranches for up to 30.0 million Shares to professional and sophisticated investors pursuant to s708 of the Corporations Act 2001 (Cth) at the Issue Price of $0.10 per Share to raise up to $3.0 million (before costs).

• Tranche 1 Placement: unconditional placement of up to 12.4 million Shares under the Company’s existing ASX Listing Rule 7.1 and 7.1A capacity, at the Issue Price of $0.10 to raise $1.24 million; and
  
• Tranche 2 Placement: conditional placement of up to 17.6 million Shares at the Issue Price of $0.10 to raise $1.76 million; subject to shareholder approval.

The Issue Price of $0.10 per Share is a 4.8% discount to the last traded price of $0.105 on 23 February 2023.

Subject to shareholder approval under ASX Listing Rule 10.11, all Directors of the Company have committed to increase their significant shareholding in the Company via the Placement for a further $70,000 consisting of:

• Non-executive Director, David Izzard, 250,000 Shares to raise $25,000; and
  
• Non-executive Director, John Hannaford, 250,000 Shares to raise $25,000; and
• Managing Director, Lachlan Reynolds, 200,000 Shares to raise $20,000.

Subject to shareholder approval, each Share issued in the Placement will entitle participants to one (1) free listed option (Option) for every two (2) Shares issued (exercise price $0.25 and an expiry 26 November 2024).

The Placement Shares will rank equally with existing ordinary shares on issue. Each quoted Option will be in the same class as the company’s existing Quoted Options (ASX:MTMO).

In coming weeks, Mt Monger will convene a meeting of shareholders to seek approval for the Tranche 2 Placement Shares and Options to be issued under the Placement.

The Tranche 1 Placement Shares are expected to be issued on or about Monday 6 March 2023 and the Tranche 2 Placement Shares and Options will be issued following shareholder approval, expected to be in early April 2023.

Lazarus Corporate Finance Pty Ltd (Lazarus) have acted as lead manager to the Placement.

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