Polymetals Resources Invites Shareholders to Invest $3.2M via Share Purchase Plan

Polymetals Resources Opens Share Purchase Plan

Polymetals Resources Ltd (ASX: POL) has officially launched a Share Purchase Plan (SPP) offering its eligible shareholders the opportunity to purchase new shares at a fixed issue price of $0.80 each. The plan opened on 18 February 2025 and will close on 11 March 2025, inviting shareholders with registered addresses in Australia and New Zealand to participate.

This SPP follows a successful institutional placement completed earlier in February, which raised $35 million through the issuance of 43.75 million shares at the same $0.80 price point. The SPP aims to raise an additional $3.2 million, providing existing shareholders a chance to increase their stake without brokerage fees.

Strategic Use of Capital

The funds raised through the SPP, alongside the placement proceeds, will be directed towards strengthening Polymetals’ balance sheet, supporting ongoing exploration activities, and covering general working capital requirements including transaction costs. This capital injection is critical as the company seeks to advance its resource base and maintain operational flexibility amid a competitive mining sector.

Executive Chairman David Sproule emphasized the importance of shareholder participation, noting that the SPP is a cost-effective way for investors to support the company’s growth trajectory. The issue price represents a roughly 9.3% discount to the recent five-day volume weighted average price, providing an incentive for shareholders to participate.

Participation Details and Conditions

Eligible shareholders can apply for new shares in increments of $500, with a minimum subscription of $1,000 and a maximum of $30,000. The plan is non-underwritten, meaning there is no guarantee the full $3.2 million target will be raised. Should demand exceed the target, Polymetals reserves the right to scale back allocations on a pro rata basis relative to shareholders’ existing holdings.

Importantly, the SPP is non-transferable and open only to shareholders recorded on the company’s register as of 7 February 2025. Custodians may apply on behalf of beneficiaries, subject to compliance with ASIC regulations. The new shares will rank equally with existing ordinary shares and are expected to be issued on 17 March 2025, with trading commencing the following day.

Risks and Regulatory Notes

Polymetals cautions that investing in the SPP shares is speculative and involves risks, including potential loss of capital. The company also highlighted a material risk related to environmental bond obligations tied to its Endeavor Project, which if unmet, could have significant strategic and financial consequences. Shareholders are urged to carefully consider these factors and seek independent advice before participating.

The SPP offer booklet and application forms are accessible online, with support available through the company’s share registry. The board encourages shareholders to review all documentation thoroughly to understand the terms and conditions.