Discounted Share Offer Tests Investor Appetite Amid Exploration Push

Capital Raising to Support Exploration Ambitions

Iltani Resources Limited (ASX: ILT) has announced a Share Purchase Plan (SPP) aimed at raising up to A$1 million by inviting existing shareholders in Australia and New Zealand to purchase additional shares at a discounted price. This follows a recent A$1.8 million placement to institutional investors, also priced at A$0.215 per share.

The SPP offers shareholders the opportunity to buy shares at a 10.4% discount to the last traded price of A$0.24, allowing smaller investors to increase their holdings without brokerage fees. Eligible shareholders can subscribe for parcels ranging from A$2,000 up to a maximum of A$30,000 worth of shares.

Strategic Use of Funds

Proceeds from both the placement and the SPP will be directed primarily towards advancing exploration activities at the company’s flagship Orient Project, alongside other areas of interest. The capital will also support general working capital needs, providing the company with flexibility as it progresses its exploration agenda.

The Orient Project, situated in a region known for its mineral potential, remains central to Iltani’s growth strategy. The fresh capital injection is expected to accelerate drilling and evaluation programs, potentially unlocking value for shareholders.

Participation Details and Conditions

The offer is open to shareholders recorded on the company’s register as of 7:00pm Sydney time on 20 May 2025, with registered addresses in Australia or New Zealand. The SPP is non-renounceable, meaning shareholders cannot transfer their rights to subscribe to others. The company reserves the right to accept oversubscriptions and to scale back applications at its discretion, ensuring compliance with ASX Listing Rules and the Corporations Act.

Applications open on 29 May 2025 and close at 5:00pm Sydney time on 20 June 2025, with shares expected to be allotted by 27 June 2025 and commence trading shortly thereafter. Payment can be made via BPAY or electronic funds transfer, with no brokerage or transaction costs to shareholders.

Market Implications and Outlook

This capital raising initiative reflects Iltani’s commitment to maintaining momentum in its exploration efforts while providing existing shareholders with a cost-effective way to increase their investment. The discounted share price may attract strong participation, but the company’s discretion over scale-backs introduces some uncertainty over final allocations.

Investors will be watching closely how the market responds to the SPP and the subsequent use of funds at the Orient Project. The success of this capital raise could set the tone for Iltani’s next phase of growth and exploration milestones.