Alvo Minerals Limited (ASX: ALV), an Australian minerals exploration company operating in central Brazil with projects targeting base metals and rare earth elements, has announced a binding commitment to raise A$1.25 million. This capital raise, a premium placement to a group of strategic investors, involves the issue of 41,666,666 new fully paid ordinary shares at A$0.03 each. This issue price represents a 15% premium to Alvo’s last closing price on 30th April and a 15% premium to the 15-day Volume Weighted Average Price (VWAP).
Alvo’s Managing Director, Rob Smakman, expressed satisfaction in welcoming the new strategic investors, underscoring their support for the company’s critical minerals projects in Brazil. Mr Smakman noted that the additional funds would “help clear the runway towards more drilling and additional fieldwork.” He also highlighted the benefit to shareholders of securing this placement at a premium without customary associated cash costs, enabling more capital to be deployed directly into ground operations.
Crucially, no cash fee is payable for the placement. GBA Capital will receive 6 million unlisted options, each with an exercise price of A$0.10 and a three-year expiry, for introducing the strategic investors. The Placement Shares are not subject to shareholder approval and are anticipated to be allotted and issued on Friday, 8th May 2026, leveraging the company’s existing Listing Rule capacity.
The A$1.25 million raised will bolster Alvo’s treasury, primarily allocated to advancing ongoing exploration across its critical minerals projects in Brazil. This includes continued auger drilling, geophysical surveys, and geological interpretation at the Palma project, designed to precede additional diamond drilling programs. Funds will also support exploration at the Bluebush and Ipora Rare Earth Elements projects, alongside general working capital requirements.
