TREK METALS LIMITED

Trek To Raise Up To $7.5 Million To Accelerate Maiden Pilbara Lithium Drilling Program

Funds to underpin a significant ramp-up in exploration over the next six months, with initial drilling program at the Tambourah Lithium Project set to commence in June 2023

Trek Metals Limited (ASX: TKM, Trek or the Company) is pleased to announce a strongly supported capital raising of up to A$7.5 million (before costs) to accelerate exploration across its lithium and manganese projects in the Pilbara region of Western Australia (Placement).


Highlights

  • Firm commitments received for a Share Placement to raise up to A$7.5 million at $0.06 per share with a free attaching 1:3 option at $0.085 with a 2-year expiry.
  • Placement was strongly supported by new and existing sophisticated investors, including members of the Board, with Trek Directors to participate in the placement for a total amount of approximately $500,000 (subject to shareholder approval).
  • Proceeds will increase Trek’s cash reserves to over A$9 million, putting it in a strong position to execute its growth strategy in 2023.
  • Funds will be used to accelerate exploration activity across Trek’s Pilbara exploration portfolio, including a maiden drilling campaign at the Tambourah Lithium Project which is expected to commence next month.
  • Major ramp-up in exploration programs scheduled over the next six months, paving the way for strong news flow over the remainder of FY2023.
The Company has received firm commitments for the Placement comprising 75 million shares in the capital of the Company (Shares) at an issue price of $0.06 per Share to existing and new professional, sophisticated and other institutional investors to raise a total of $4.5 million (Tranche One). In addition, the Company has elected to accept oversubscriptions of an additional A$3.0 million in Shares from directors of the Company and other investors introduced by the Board in a second tranche which will be subject to shareholder approval (Tranche Two). The Placement includes a 1:3 free attaching option exercisable at $0.085 per option expiring 2 years from the date of issue (Attaching Option). The Attaching Options will be issued subject to shareholder approval at the Company’s Annual General Meeting expected to be held in late July 2023 (AGM). The Company intends to list the Attaching Options, subject to satisfying ASX Listing Rule requirements.

Commenting on the capital raising, Trek’s Chief Executive Officer Derek Marshall said:

"This is a significant capital raising that will put Trek in a strong financial position as we embark on our maiden drilling program at the Tambourah Lithium Project and progress exploration programs across our other projects in the Pilbara.

“Tambourah is a hugely exciting target that has all the right ingredients for a lithium discovery – including high-grade spodumene rock chip of up to 3.07% Li2O as announced by the Company on 27 October 2022 and 7 November 2022 – and we are very much looking forward to getting on the ground to get our maiden drill program underway.

“2023 is set to be an exciting year for Trek, with plenty of targets to test. We now have a strong balance sheet to support these programs and I would like to sincerely thank all our shareholders for their support.”


Click here for the full ASX Release

This article includes content from Trek Metals 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.

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