Polymetals Issues 18.75M Shares, Nets $14.97M to Replace $10M Debt Facility
Polymetals Resources Ltd has successfully completed a $15 million equity raise to replace debt and support the production ramp-up at its Endeavor Mine in New South Wales.
- Raised $15 million through issuance of 18.75 million shares at $0.80 each
- Net proceeds of $14.97 million after settlement costs
- Funds used to replace undrawn US$10 million debt facility
- Total shares on issue increased to 267.8 million
- Supports working capital during Endeavor Mine production ramp-up
Equity Raise Completed
Polymetals Resources Ltd (ASX, POL) has completed a $15 million equity raise by issuing 18.75 million new shares at an issue price of $0.80 per share. After settlement costs of approximately $30,000, the company netted $14.97 million. This capital injection was announced just a week prior and was executed under the company’s existing capacity pursuant to ASX Listing Rule 7.1.
Strategic Use of Funds
The proceeds from this placement are earmarked to replace an undrawn US$10 million debt facility. This move effectively strengthens Polymetals’ balance sheet by reducing reliance on debt and ensuring sufficient working capital as the Endeavor Mine ramps up production. The Endeavor Mine, located in the prolific Cobar Basin of New South Wales, is a high-grade silver-zinc operation that is central to Polymetals’ growth strategy.
Implications for Production and Growth
With the equity raise completed, Polymetals is positioning itself to support the operational demands of the Endeavor Mine’s production ramp-up phase. This period is critical for the company as it transitions from development to steady-state production, aiming to become a long-term, profitable base and precious metals producer. The additional working capital will provide flexibility to manage operational costs and potential unforeseen expenses during this phase.
Shareholder Impact and Market Position
Following the placement, Polymetals now has 267,813,677 fully paid shares on issue. The new shares began trading on the ASX on 14 July 2025. While the equity raise dilutes existing shareholders slightly, it reflects a proactive approach to capital management that prioritizes operational stability and growth potential over increased leverage.
Looking Ahead
Polymetals’ focus remains on advancing the Endeavor Mine and exploring its broader portfolio within the Cobar Basin for further polymetallic discoveries. The successful equity raise is a positive signal of the company’s ability to attract capital and execute its strategic plans amid a competitive mining sector.
Bottom Line?
Polymetals’ equity raise sets the stage for a critical production ramp-up, but execution risks remain as the Endeavor Mine moves toward steady output.
Questions in the middle?
- How will the Endeavor Mine’s production ramp-up progress over the next 12 months?
- What are the company’s plans for further exploration or acquisitions in the Cobar Basin?
- Could future capital raises or debt facilities be required if production targets are delayed?
