Summit Raises $593K Placement Plus $1.08M Fully Underwritten Rights Issue

Capital Raising Overview

Summit Minerals Limited (ASX – SUM) has announced a strategic capital raising initiative designed to underpin its exploration ambitions in Brazil and support corporate growth. The company is set to raise approximately $1.67 million through a combination of a Placement and a fully underwritten non-renounceable Rights Issue.

The Placement, which has already secured firm commitments, will raise $593,000 by issuing around 19.3 million shares at prices of $0.028 and $0.034. This tranche attracted new sophisticated and professional investors, signaling renewed market confidence in Summit’s prospects.

Details of the Rights Issue

Complementing the Placement, Summit will offer eligible shareholders a one-for-three non-renounceable Rights Issue priced at $0.03 per share, aiming to raise an additional $1.08 million. This price represents a meaningful discount of nearly 19% to the company’s last closing price, reflecting a common approach to incentivize shareholder participation.

The Rights Issue is fully underwritten by CPS Capital, which also acts as Lead Manager for both the Placement and the Rights Issue. CPS Capital’s involvement includes a 6% capital raising fee on the Placement, a 6% underwriting fee on the Rights Issue, and the grant of 5 million Lead Manager Options exercisable at $0.045 over three years, subject to shareholder approval.

Use of Proceeds and Strategic Implications

Funds raised will primarily support Summit’s exploration activities across its Brazilian projects, which include critical battery minerals such as niobium, tantalum, rare earth elements, and lithium. The capital will also facilitate the evaluation and acquisition of new value-accretive projects, alongside providing general working capital and covering the costs associated with the capital raising.

Summit’s Managing Director, Dr. Matthew Cobb, emphasizes the company’s commitment to unlocking value through disciplined exploration and strategic project development. The fresh capital injection is expected to accelerate these efforts, positioning Summit to capitalize on the growing demand for battery and critical minerals.

Timetable and Next Steps

The Placement shares are expected to be issued around 19 September 2025, with the Rights Issue prospectus to be lodged with ASIC and ASX by early October. Eligible shareholders will receive the prospectus and acceptance forms mid-October, with the Rights Issue closing at the end of October. The company retains flexibility to manage shortfalls, including granting CPS Capital rights to place additional shares if less than half of the Rights Issue is subscribed.

Investors should monitor the subscription progress closely, as the final uptake will influence dilution and the company’s immediate financial flexibility.