Future Metals will issue 40 million new fully paid ordinary shares at a price of 12.5 cents per share to raise $5 million.
The company will also offer eligible shareholders the opportunity to participate in a Share Purchase Plan on the same terms as the placement to raise up to an additional $500,000.
Net proceeds will be utilised on exploration activities to test nickel-copper-PGE sulphide potential of the company’s Western Australian Panton mine, and progress a scoping study based on the existing platinum group metal resource as well as ongoing metallurgical test work and for general working capital.
Future Metals managing director Jardee Kininmonth said the continued support from existing sophisticated and institutional investors, and several new investors to the register, were welcomed.
The Panton project is located near the town of Halls Creek in the Kimberley, a Tier 1 mining jurisdiction.
It is located on three granted mining licences and situated just 1km off the Great North Highway which accesses the Port of Wyndham.