Meteoric Resources NL (ASX: MEI), a company focused on the exploration and development of mineral resources, is pleased to announce it has secured firm commitments to raise $42.5 million before costs, through a placement of approximately 304 million new shares at $0.14 per share. The placement was heavily oversubscribed and upsized due to strong support from existing and new institutional investors, including cornerstone commitments from North American funds. The offer price represents a 3.3% discount to the 10-day VWAP, demonstrating significant institutional demand.
The funds raised will be used to advance the Caldeira Project, including environmental licensing, community development initiatives, pilot plant development, and resource development activities. The Caldeira Project is a rare earth iconic absorption clay project in Brazil. This placement coincides with the release of the Pre-Feasibility Study (PFS) for the Caldeira Project, which included the announcement of Meteoric’s Maiden Ore Reserve of 103Mt @ 4,091ppm TREO within a Resource of 1.5Bt @ 2,359ppm.
Meteoric Resources Managing Director and CEO, Stuart Gale, commented that the placement is an excellent outcome for Meteoric and its ambitions for the Caldeira Project. The new funding will provide significant capacity to further invest and optimise the Pre-Feasibility Study that was released this week. This includes establishing a pilot plant to produce bulk samples for metallurgical testwork, customer validation, and downstream development. The company anticipates that outcomes from these programs will feed into the Caldeira Project development and move it towards a Final Investment Decision in 2026.
Following the settlement of the Placement, Meteoric will have a pro-forma cash balance of approximately $53.5 million, based on the 30 June cash balance. Settlement of the new shares is expected on 29 July 2025, with allotment on 30 July 2025. Canaccord Genuity (Australia) Limited and SCP Resource Finance LP acted as Joint Lead Managers and Bookrunners for the placement, which was not underwritten.
