Pinnacle Minerals Ltd is set to raise an additional $440,000 through a third tranche placement, aiming to accelerate its exploration programs and pursue new opportunities. This move follows strong investor demand and awaits shareholder approval.
- Additional $440,000 capital raise via third tranche placement
- Issue of 11 million shares at 4 cents each
- 5.5 million options exercisable at 8 cents over 3 years
- Funds to advance exploration at Canadian and Australian projects
- Placement managed by Oakley Capital Partners and AE Advisors with 6% fee
Pinnacle Minerals Expands Capital Raising
Pinnacle Minerals Ltd (ASX, PIM) has announced an extension to its recent capital raising, adding a further $440,000 through a third tranche placement. This decision comes on the back of strong investor interest in the company’s earlier funding rounds. The additional funds will be raised by issuing 11 million shares at 4 cents each, subject to shareholder approval at the upcoming General Meeting.
Options Sweeten the Deal
Alongside the share issue, Pinnacle plans to grant 5.5 million options to investors, with each option exercisable at 8 cents and expiring three years from the date of issue. These options also require shareholder approval. This structure aims to provide investors with potential upside while supporting the company’s capital needs.
Funding Exploration and Growth
The freshly raised capital is earmarked to further advance Pinnacle’s exploration programs across its portfolio, which includes promising battery and technology mineral projects in Canada and Australia. Notably, the company’s flagship Adina East Project in Quebec is situated near several world-class lithium developments, positioning Pinnacle well within a highly sought-after region for battery metals.
In Australia, Pinnacle continues to explore for rare earth elements and heavy mineral sands, sectors gaining increasing attention amid the global push for clean energy technologies. The additional funds will also support the company’s efforts to identify and evaluate new opportunities in these strategic mineral markets.
Managed Placement and Costs
The tranche 3 placement is being managed by Oakley Capital Partners Pty Ltd and AE Advisors, who will receive a 6% fee on the funds raised. This professional management underscores the company’s commitment to executing the capital raise efficiently and effectively, ensuring that proceeds are directed promptly towards exploration activities.
Looking Ahead
With shareholder approval pending, Pinnacle Minerals is poised to strengthen its financial position and accelerate its exploration agenda. The company’s strategic focus on battery and technology minerals aligns with growing global demand, potentially positioning it for significant value creation as projects advance.
Bottom Line?
Shareholder approval will be the next critical step before Pinnacle Minerals can deploy fresh funds to fuel its exploration ambitions.
Questions in the middle?
- Will shareholders approve the third tranche placement and options issuance?
- How soon will the new funds be deployed across Pinnacle’s projects?
- What new opportunities might Pinnacle pursue with this additional capital?