WA1 Resources has successfully secured firm commitments for a $100 million placement, priced at $17 per share. This represents a 9.4 per cent discount to the company’s five-day volume-weighted average price. The placement will result in the issue of approximately 5.9 million new shares, bringing the total number of shares on issue to roughly 74.2 million.
According to WA1, the raised capital is earmarked for pre-development activities and infrastructure work at its Luni Niobium Project. Specifically, the funds will facilitate crucial mine design studies, process flow sheet testing, and necessary permitting activities. A portion of the capital will also be allocated to essential capital expenditure on supporting infrastructure, ongoing exploration efforts, and general working capital requirements.
WA1 Resources is focused on discovering and developing high-grade niobium deposits in Western Australia. The company’s primary focus is the Luni Niobium Project. Managing Director Paul Savich highlighted the strong institutional and shareholder interest as a validation of the project’s intrinsic value. Savich also noted that post-placement, the company will hold approximately $168 million in cash, providing a robust balance sheet to advance what he described as one of Australia’s most important critical mineral projects.
Canaccord Genuity served as the global co-ordinator, joint lead manager, and joint bookrunner for the placement. Argonaut Securities and Bell Potter Securities also participated in the capital raise as joint lead managers and co-manager, respectively.
