Alma Metals to Issue 264 Million Shares at 0.4 Cents in Rights Offer

Capital Raise to Fuel Exploration

Alma Metals Limited (ASX: ALM) has unveiled a pro-rata non-renounceable rights offer designed to raise just over $1 million. The capital raising initiative will see the issue of up to approximately 264 million new shares at a price of 0.4 cents each, representing one new share for every six shares held by eligible shareholders. This move is a strategic effort to secure funding for advancing the Briggs Copper Project, located in Queensland, Australia.

Focus on Briggs Copper Project

The funds raised will be primarily allocated to completing a scoping study and undertaking drilling activities at Briggs, a project that boasts an estimated 2 million tonnes of contained copper. Alma Metals highlights the project's significant potential for expansion in both tonnage and grade, supported by its advantageous location near key infrastructure such as the Gladstone deep-water port and major transport routes. The company believes these factors enhance the project's economic viability and operational efficiency.

Offer Details and Shareholder Impact

The offer is non-renounceable, meaning shareholders cannot sell their rights on the market, and it is not underwritten, which introduces a degree of subscription risk. A minimum subscription threshold of $500,000 has been set, underscoring the company's commitment to ensuring the raise meets a meaningful scale. Eligible shareholders are those with registered addresses in Australia or New Zealand as of the record date, with overseas shareholders excluded due to regulatory and administrative complexities.

Timetable and Next Steps

The offer document is scheduled for release on 3 June 2025, with the offer period closing on 20 June. Alma Metals plans to announce the results of the offer by 27 June, followed by the issue of new shares. Investors will be watching closely to see the level of shareholder participation, which will directly influence the company’s ability to fund its near-term exploration objectives.

Broader Company Context

Beyond Briggs, Alma Metals also holds the East Kimberley Copper Project in Western Australia, an early-stage exploration opportunity that could complement its Queensland assets. However, the immediate focus remains firmly on unlocking value at Briggs through targeted drilling and study work, which could pave the way for future development decisions.