Alma Metals Limited has announced a pro-rata non-renounceable rights offer to raise approximately $1.06 million, aiming to fund critical drilling and a scoping study at its Briggs Copper Project in Queensland.
- Pro-rata rights offer to raise up to $1.06 million
- Issue of approximately 264 million new shares at 0.4 cents each
- Funds allocated for Briggs Copper Project drilling and scoping study
- Offer not underwritten with a $500,000 minimum subscription
- Offer available only to Australian and New Zealand shareholders
Alma Metals Seeks Fresh Capital
Alma Metals Limited (ASX: ALM) has announced a pro-rata non-renounceable rights offer designed to raise up to approximately $1.06 million. The company plans to issue around 264 million new shares at a price of 0.4 cents each, offering existing shareholders the opportunity to purchase one new share for every six shares they currently hold.
Purpose of the Raise
The capital raised will be directed primarily towards advancing the Briggs Copper Project in Queensland. Specifically, funds will support the completion of a scoping study and further drilling activities aimed at better defining the project's potential. Additional proceeds will cover working capital needs and the costs associated with the offer itself.
Offer Details and Timetable
The offer is not underwritten, which introduces some risk regarding the final amount raised, with a minimum subscription threshold set at $500,000. Key dates include the record date on 28 May 2025, the opening of the offer on 2 June, and the closing date on 16 June. New shares are expected to commence trading on a deferred settlement basis from 20 June, with the issue finalized by 26 June 2025.
Strategic Context
Briggs is a significant copper project boasting approximately 2 million tonnes of contained copper, with promising potential for expansion through ongoing exploration. Its location near Gladstone’s deep-water port and proximity to key infrastructure such as power lines, railways, and highways enhances its operational appeal. Alma Metals also holds the East Kimberley Copper Project in Western Australia, an early-stage exploration asset that could complement its portfolio in the future.
Shareholder Considerations
The offer is restricted to shareholders with registered addresses in Australia and New Zealand, excluding overseas investors due to regulatory and administrative complexities. Notably, shareholder approval is not required for this capital raising, streamlining the process. Managing Director Frazer Tabeart has authorised the announcement, underscoring the company’s commitment to progressing its flagship project.
Bottom Line?
The success of this rights offer will be pivotal in determining Alma Metals’ ability to unlock the full potential of Briggs and sustain momentum in its copper ambitions.
Questions in the middle?
- Will the rights offer achieve its minimum subscription given it is not underwritten?
- How will the results of the upcoming scoping study influence project financing and development timelines?
- What are the prospects and timelines for advancing the East Kimberley Copper Project alongside Briggs?