Investors snap up PEC's $1.6m placement
Proceeds will be used to carry out follow-up exploration at its Igrejinha lithium project
Funds will also be used for drilling to support maiden JORC resource estimate at Raptor REE project
Special Report: Investors have demonstrated their confidence in Perpetual Resources by firmly backing a $1.6m placement to accelerate exploration for lithium and caesium in Brazil.
Such was the strong demand from sophisticated and institutional investors for the placement of 72.7m shares at 2.2c each that allocations were scaled-back.
The price was a 10% premium to the 15-day volume weighted average price of 2c with Perpetual Resources (ASX:PEC) to issue one free attaching option exercisable at 3c and expiring on December 31, 2027, for every two shares subscribed for.
Investor interest follows the company's recent update on maiden drilling at Igrejinha, which intersected a continuous lithium-caesium-tantalum pegmatite that stretches over 200m of strike and >50m depth that's open in all directions.
Drilling below historical workings also confirmed the presence of spodumene and potential high-value pollucite – a caesium mineral – while drilling below high-grade rock chip samples that returned peak results of >5.3% Cs2O and 7.6% Li2O also intersected pegmatite.
'This capital raise was strongly supported by new and existing investors, reflecting growing confidence in our Brazilian exploration portfolio,' PEC executive chairman Julian Babarczy said.
'With early success already achieved at Igrejinha, including high-grade spodumene and pollucite, as well as advancement at our Raptor rare earth project, we are well positioned to escalate exploration across multiple high-impact project areas.'
Listen to more from PEC: Perpetual pounces for counter-cyclical payoff
Use of funds
PEC will use the funds for ongoing exploration in Brazil. This includes follow-up exploration at the Igrejinha project, drilling at the Raptor REE project, and initial exploration across the company's broader portfolio of Lithium Valley assets in Minas Gerais.
Planned deeper drilling at Raptor will assess mineralisation at depth and test its full extent in order to support a maiden JORC resource.
'These funds ensure that Perpetual can maintain momentum and unlock further value for shareholders as we progress toward our next major drilling milestones,' Babarczy added.
This article was developed in collaboration with Perpetual Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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