Lincoln Minerals Offers Shares at 0.5 Cents to Raise $1.5 Million

Capital Raise to Accelerate Exploration

Lincoln Minerals Limited (ASX, LML) has launched a renounceable entitlement issue to raise up to $1.5 million at a discounted price of 0.5 cents per share. This move is designed to inject fresh capital into the company’s portfolio of critical minerals projects located on South Australia’s Eyre Peninsula. The offer is partially underwritten to $0.5 million by Mahe Capital, providing some certainty around the raise.

The entitlement issue allows existing shareholders to purchase one new share for every seven held, with the added incentive of receiving one free attaching option for every two new shares subscribed. These options carry an exercise price of 1 cent and expire at the end of 2027, offering potential upside if the company’s projects progress favorably.

Strategic Focus on Critical Minerals

Funds raised will primarily support drilling activities at the Minbrie Copper & Base Metals Project, a key asset where recent exploration has confirmed a large-scale mineralised system extending over a 7-kilometre strike. This project is central to Lincoln’s strategy to tap into the growing demand for copper and base metals, which are critical for electrification and decarbonisation technologies.

Beyond Minbrie, the capital will also advance fieldwork on uranium tenements, metallurgical studies at the Kookaburra Graphite Project, and technical evaluations of the Green Iron Magnetite Project. These initiatives reflect Lincoln’s diversified approach to critical minerals, positioning the company to benefit from multiple commodity markets aligned with global supply chain security and green energy trends.

Market Position and Shareholder Incentives

The entitlement issue price represents a significant discount of 38% to the last traded price and 29% to the 30-day volume weighted average price, a common strategy to encourage shareholder participation. Shareholders can also trade their entitlements on the ASX starting 7 August 2025, providing flexibility in how they choose to engage with the offer.

Lincoln’s interim chairman Ryan Smith emphasised the importance of this capital raise as a milestone in executing the company’s growth strategy. The inclusion of free attaching options is designed to reward loyal shareholders and potentially enhance future value as exploration results materialize.

Looking Ahead

The offer closes on 27 August 2025, with the company aiming to apply the funds efficiently to unlock value across its portfolio. While the final allocation of funds may shift depending on market and project developments, the clear focus remains on advancing exploration and development activities that underpin Lincoln’s critical minerals ambitions.