Pinnacle Minerals’ $1.76M Placement Includes Free Options at $0.08 Exercise Price
Pinnacle Minerals Ltd has announced a $1.76 million capital raise through a two-tranche share placement with free attaching options, aiming to advance its exploration projects in Canada and Australia.
- Placement to raise approximately $1.76 million before costs
- Shares issued at $0.04 with free attaching options exercisable at $0.08
- Placement split into two tranches, second tranche subject to shareholder approval
- Funds allocated to exploration, working capital, and strategic opportunities
- Executive Chair remuneration set at $175,000 per annum
Capital Raise to Fuel Growth
Pinnacle Minerals Ltd (ASX – PIM) has announced a placement to raise approximately $1.76 million through the issuance of new shares priced at 4 cents each. This capital injection is designed to support the company’s ongoing exploration activities and provide working capital flexibility. The placement includes free attaching options exercisable at 8 cents, valid for three years, offering investors additional upside potential.
Two-Tranche Placement Structure
The placement will be executed in two parts. The first tranche involves issuing over 11 million shares to sophisticated investors, raising about $455,000 under existing ASX placement capacity. The second tranche, comprising over 32 million shares and expected to raise approximately $1.3 million, awaits shareholder approval at a general meeting anticipated around mid-September 2025. Both tranches include one free attaching option for every two shares subscribed.
Strategic Use of Funds
Funds raised will primarily advance Pinnacle’s exploration programs across Canada and Australia. The company’s flagship asset, the Adina East Project in Quebec, is strategically located near several high-profile lithium projects, positioning Pinnacle well in the competitive battery metals sector. Additionally, the capital will support general working capital needs and provide flexibility to pursue strategic opportunities as they arise.
Leadership and Incentives
Executive Chair William Witham will continue in his role with a remuneration package set at $175,000 per annum plus statutory superannuation. The placement was jointly managed by AE Advisors and Oakley Capital Partners, who will receive a 6% capital raising fee and a total of 8 million broker options on the same terms as the attaching options, aligning their interests with the company’s growth prospects.
Shareholder Rewards and Next Steps
In addition to the placement, Pinnacle plans to offer a bonus option entitlement to existing shareholders as a gesture of appreciation for their ongoing support, with details to be announced in due course. The upcoming shareholder meeting will be a key event to watch, as approval for the second tranche of the placement and option issuance will be sought, setting the stage for Pinnacle’s next phase of growth.
Bottom Line?
Pinnacle’s successful capital raise sets the stage for accelerated exploration, but shareholder approval and execution remain critical next steps.
Questions in the middle?
- Will shareholders approve the second tranche and option issuance at the upcoming meeting?
- How will Pinnacle prioritize its exploration projects with the new funds?
- What details will emerge regarding the proposed bonus option entitlement for existing shareholders?