Alvo Minerals Limited (ASX: ALV) today announced it has secured A$1 million in binding commitments from a group of strategic and existing investors through a placement. Alvo Minerals explores for base and precious metals like copper and zinc at its Palma Project in Brazil, and Rare Earth Elements (REE) at its Bluebush and Ipora projects in Central Brazil. The placement involves issuing 50 million new fully paid ordinary shares at A$0.02 each. This issue price aligns with Alvo’s last closing price and marks a 1.18% premium to its 15-day volume weighted average price.
Participants in the placement will receive one free attaching unquoted option for every two shares subscribed, exercisable at A$0.04 with an 18-month expiry, subject to shareholder approval. The company highlighted that no cash fee is payable for the placement. GBA Capital, for introducing the investors, will be issued 8 million unquoted options under similar terms, also subject to shareholder approval. Alvo’s Managing Director, Rob Smakman, stated that closing this placement at market and without customary cash costs is a notable benefit, allowing more funds to be spent on exploration.
The A$1 million raised will reinforce Alvo’s treasury, specifically supporting ongoing exploration across its critical minerals projects in Brazil. This includes continued exploration at Palma, with auger drilling, geophysical surveys, and geological interpretation underway, aiming towards additional diamond drilling programs. Funds are also earmarked for exploration at the Bluebush Ionic Clay Heavy Rare Earth Project and the Ipora REE Projects, as well as for general working capital.
