Future Metals Launches $2.64M Entitlement Offer to Advance Eileen Bore Project
Future Metals NL has announced a $2.64 million entitlement offer to fund its Eileen Bore Cu-Ni-PGM project, partially underwritten by CPS Capital Group. The offer opens mid-May to eligible shareholders across multiple jurisdictions.
- 1-for-3 non-renounceable entitlement offer to raise A$2.64 million
- Offer price set at A$0.011 per share, matching recent placement price
- Partial underwriting by CPS Capital Group up to A$1.98 million
- Funds aimed at advancing Eileen Bore Cu-Ni-PGM project and working capital
- Directors and major shareholder Zeta Resources intend to participate fully
Capital Raise to Support Key Project Development
Future Metals NL (ASX:AIM: FME) has announced the launch of a 1-for-3 pro-rata non-renounceable entitlement offer to raise approximately A$2.64 million (around £1.28 million). This follows a recent placement of A$1.58 million and is designed to provide additional funding primarily for the development of the company’s flagship Eileen Bore copper-nickel-platinum group metals (Cu-Ni-PGM) project.
The offer price is set at A$0.011 per new share, consistent with the recent placement price and representing a modest 2.8% discount to the 15-day volume-weighted average price. This pricing strategy aims to balance shareholder value retention with the need to attract sufficient participation.
Underwriting and Shareholder Participation
The entitlement offer is partially underwritten by CPS Capital Group Pty Ltd up to approximately A$1.98 million, providing a degree of certainty to the capital raise. The underwriting agreement includes standard protections for the underwriter, including termination rights triggered by adverse market movements or regulatory issues.
Notably, Future Metals’ directors Patrick Walta and Sam Rodda have committed to fully participate in the offer, signaling confidence in the company’s prospects. Meanwhile, director John Carr has opted not to take up his entitlement. Zeta Resources Limited, a significant shareholder with a 9.99% stake acquired in the recent placement, also intends to fully subscribe and potentially increase its holding subject to Foreign Investment Review Board approval.
Offer Details and Timetable
The entitlement offer is open to eligible shareholders registered by 12 May 2025 in Australia, New Zealand, the UK, Bermuda, Malaysia, and Singapore, excluding US persons. It will open on 15 May and close on 30 May 2025, with new shares expected to commence trading on ASX and AIM by 10 June 2025.
Shareholders who do not participate will face dilution, as the offer is non-renounceable, meaning entitlements cannot be traded or sold. However, eligible shareholders can apply for additional shares beyond their entitlement from any shortfall, which will be allocated at the company’s discretion.
Strategic Implications
This capital raising effort underscores Future Metals’ commitment to advancing the Eileen Bore project, a critical asset in its portfolio with potential exposure to copper, nickel, and valuable platinum group metals. The partial underwriting and director participation suggest a vote of confidence, though the final amount raised will depend on shareholder uptake and market conditions.
Investors will be watching closely how the entitlement offer unfolds, particularly the level of subscription and any shortfall that the underwriters must cover. The outcome will influence the company’s financial flexibility and its ability to progress project milestones in the coming months.
Bottom Line?
Future Metals’ entitlement offer sets the stage for critical project development but hinges on shareholder support and regulatory approvals.
Questions in the middle?
- Will shareholder uptake meet the full $2.64 million target or will underwriters need to cover a shortfall?
- How will Zeta Resources’ potential increased stake impact Future Metals’ ownership and governance?
- What are the key upcoming milestones for the Eileen Bore project following this capital raise?
