Chilwa’s Private Placement Hinges on Shareholder Nod Amid Project Push
Chilwa Minerals has raised A$4.1 million through a private placement to fast-track exploration and development at its multi-commodity Chilwa Project in Malawi, with directors backing the raise subject to shareholder approval.
- A$4.1 million raised via two-tranche private placement
- Placement shares priced at A$1.05, a 5.4% discount to last close
- Funds targeted to accelerate resource upgrades, scoping study, and drilling
- Directors to participate subject to shareholder approval
- Settlement of first tranche scheduled for early August
Funding Boost for Chilwa’s Malawi Ambitions
Chilwa Minerals Limited (ASX, CHW) has announced a successful capital raise of A$4.1 million through a private placement aimed at accelerating the development of its critical minerals project in Malawi. The raise, conducted in two tranches, attracted firm commitments from existing shareholders and high-net-worth individuals, underscoring confidence in the company’s progress since its ASX listing just over two years ago.
Placement Details and Pricing
The placement involves the issue of 3,907,068 new fully paid ordinary shares at an offer price of A$1.05 per share, representing a 5.4% discount to the company’s last closing price of A$1.11 on 30 July 2025. The first tranche, which is unconditional, will be settled and allotted in early August, while the second tranche, involving a smaller allocation to directors, awaits shareholder approval expected at an extraordinary general meeting in September.
Strategic Use of Funds
Managing Director Cadell Buss highlighted that the funds will primarily be deployed to accelerate exploration and development milestones at the Chilwa Project, including upgrades to the heavy mineral sands (HMS) resource, completion of an initial scoping study, and ongoing diamond drilling programs. These activities are critical to advancing the project’s multi-commodity potential and delivering value to shareholders and local Malawian communities alike.
Director and Partner Support
Director participation in the placement, subject to shareholder approval, signals strong internal confidence. Additionally, Manuel Mota, Deputy CEO of Mota Engil Malawi and a non-executive director of Chilwa, reaffirmed the company’s consistent operational performance and the ongoing support from the in-country team, reflecting a collaborative approach to project advancement.
Looking Ahead
The capital raise positions Chilwa Minerals to maintain momentum as it approaches key milestones. Investors will be watching closely for the upcoming resource upgrades and scoping study results, which will provide greater clarity on the project’s commercial potential and guide future development decisions.
Bottom Line?
Chilwa’s fresh capital injection sets the stage for pivotal project updates that could reshape its growth trajectory.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly at the upcoming EGM?
- How will the market react to the upcoming resource upgrade and scoping study results?
- What are the longer-term plans for commercialising the Chilwa Project’s multi-commodity resources?
