PVW Resources Limited ( ASX: PVW) (PVW or the Company) is pleased to announce that it has successfully secured commitments from existing and new institutional and new high net worth investors to subscribe for 23,750,000 new fully paid ordinary shares in the Company (New Shares) at a price of $0.40 per New Share to raise proceeds of $9.5 million (Placement) before costs. The heavily oversubscribed placement was arranged and managed by the Company’s broker, CPS Capital Group Pty Ltd (CPS).

• The Company has secured commitments for a $9.5 million placement to institutional and sophisticated investors via CPS Capital Group Pty Ltd; Strong institutional interest supports the potential of the Tanami Heavy REE Project located in the Kimberley Region within Western Australia.
• PVW is fully funded to complete the 2022 exploration program at the Tanami REE Project with drilling expected to commence in the next month. The drilling will initially focus on the Killi Killi East target which has reported 12.45% TREO in rock chips.
• Rare Earths are attracting attention within Australia and the US, with significant contributions of government funding to support the development of critical minerals projects in Australia:
  • Australian government commits $2bn to critical minerals projects.
  • US government agrees to fund Australian critical minerals projects.
  • 2022 Federal Budget allocated $400m to seal the Tanami Road to the WA / NT Border which is within 20km of the Tanami REE project.

Placement details

The New Shares will be issued in two tranches. For Tranche 1, the Company will use its existing placement capacity under Listing Rules 7.1 and 7.1A and accordingly no prior shareholder approval is required in connection with the Tranche 1 Placement. For Tranche 2, the Company will seek shareholder approval at a meeting to be convened in May 2022 (General Meeting).

The New Shares will be issued at $0.40 which represents a discount of 16% to the closing price of PVW shares on 1 April 2022 of $0.48 per share and a 25% discount to the 20-day VWAP of $0.52.

The New Shares will rank equally with the Company’s existing fully paid ordinary shares.

CPS is acting as Lead Manager, Broker and Corporate Advisor to the Company under its mandate. Under the mandate, CPS will receive a 2% Management Fee and 4% Placement

Fee of funds raised under the Placement, a corporate advisory fee of $6,000 per month for a minimum of twelve months for its ongoing Corporate Advisory role and 4,200,000 unlisted options exercisable at $0.60 with an expiry date of two years from the date of issue (Corporate Options) for managing and arranging the Placement, to be issued on the terms and conditions set out in Schedule 1 to this announcement. The Corporate Options will be subject to shareholder approval at the General Meeting.

Use of funds

The Placement along with existing cash reserves allows the Company to be fully funded for the 2022 exploration programs with particular reference to the Tanami REE and Au Project. The Company is finalising preparation for the drilling program which is targeted to commence in the next month. This program will initially comprise 10,000m of RC drilling along with 25,000m Aircore drilling targeting the 18km unconformity trend from Watts Rise to the Killi Killi East prospects. The program will commence at the Killi Killi East target which has a strike length of 3km, identified through the 2021 exploration program comprising rock chips, soil samples, mapping, airborne surveys and structural interpretation. A large number of samples were collected with over 1% TREO results and up to 12.45% TREO. Significant gold results were also present including 8.94 g/t and 4 g/t Au. The Aircore drilling will target areas both between Watts Rise and Killi Killi East and also to the north of Watts Rise.

Funds raised will also be used for capital items including exploration vehicles, portable XRFs, site transportable office and other general exploration equipment required.

The Company will also evaluate the results (assays pending) from the King of The West project 30km north of Kalgoorlie and aims to undertake a follow up drill program. Funds raised will also be allocated to general working capital.

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