Sky Metals Ltd (ASX: SKY), a company focused on exploring and developing high-value mineral resources, is pleased to announce it has secured binding commitments to raise $6.1 million before costs, through a share placement. The funds will be used to advance the development of its flagship, 100%-owned Tallebung Tin Project in central NSW. The placement garnered strong demand from existing shareholders and new investors, including notable institutional fund support.
The placement will issue approximately 93.7 million new fully-paid ordinary shares at A$0.065 per share to institutional, sophisticated, and professional investors. The placement will occur in two tranches. The initial tranche, valued at $5.5 million, will be completed under the company’s existing placement capacity according to ASX Listing Rule 7.1. The second tranche, amounting to approximately $592,000, is subject to shareholder approval and has been committed by SKY’s Directors and Management.
The proceeds from the placement are earmarked for several key activities at the Tallebung Project. These include resource expansion drilling programs, aimed at extending recently discovered higher-grade zones of tin and silver, as well as further metallurgical testwork. The testwork will involve trenching and bulk sampling to optimise recent ore sorting upgrade results and produce a large sample of tin concentrate for marketing. Funds will also be allocated to resource upgrade and mining studies.
Oliver Davies, Managing Director of Sky Metals, expressed gratitude for the strong support from existing shareholders and welcomed new shareholders, including leading resource funds. He highlighted the outstanding potential of the Tallebung Project and SKY’s growing project portfolio, while also acknowledging the strong conviction shown by the Board and Management in the project’s near-term potential. Bell Potter Securities Ltd acted as Lead Manager for the Placement, receiving a fee of 5% of the proceeds.
