Podium’s $7M Capital Raise Faces Market and Subscription Uncertainties
Podium Minerals has initiated a fully underwritten entitlement offer to raise approximately A$7 million, aiming to fund pilot plant testing and resource expansion at its Parks Reef PGM Project. The offer invites eligible shareholders to acquire new shares at 6.4 cents each, reinforcing Podium’s growth trajectory amid rising platinum group metal prices.
- Fully underwritten pro-rata entitlement offer to raise ~$7 million
- Issue price set at 6.4 cents per new share, one new share per eight held
- Funds to advance pilot plant testing of breakthrough concentrator flowsheet
- Capital to support diamond drilling, resource updates, and corporate development
- Offer open to eligible shareholders in Australia, New Zealand, and the UK
Capital Raising to Accelerate Project Development
Podium Minerals Limited has announced a fully underwritten pro-rata non-renounceable entitlement offer to raise approximately A$7 million before costs. Eligible shareholders in Australia, New Zealand, and the United Kingdom are invited to subscribe for one new fully paid ordinary share for every eight shares held, at an issue price of 6.4 cents per share. This capital raise follows a recent A$5 million placement and is designed to provide the company with the financial resources to advance its flagship Parks Reef Platinum Group Metals (PGM) Project.
Backing from Underwriters and Joint Lead Managers
The entitlement offer is fully underwritten by Leeuwin Wealth Pty Ltd, with Leeuwin Wealth and Cumulus Wealth Pty Ltd appointed as Joint Lead Managers. This arrangement ensures funding certainty for Podium, mitigating risks associated with market subscription levels. The underwriting agreement includes customary protections for the underwriters, including termination rights linked to market conditions and company disclosures.
Strategic Use of Funds
Proceeds from the entitlement offer, combined with the recent placement, will primarily fund pilot plant testing of a newly developed concentrator flowsheet; a metallurgical breakthrough that has demonstrated approximately 80% recovery of key PGMs and a significant upgrade in concentrate grade. This pilot testing is a critical step toward validating the flowsheet at scale, optimizing operational parameters, and supporting feasibility studies.
Additional funds will support a targeted diamond drilling campaign to secure metallurgical samples, deeper exploratory drilling to enhance resource continuity, laboratory test work on other mineralized zones within Parks Reef, and an update to the Range Well Nickel Project resource estimate. Corporate and business development activities will also be funded to unlock further value-add opportunities.
Market Context and Shareholder Participation
The capital raising comes amid tightening supply and resilient demand in the PGM sector, with platinum prices recently reaching their highest levels in over a decade. Podium’s Executive Chairman, Rodney Baxter, highlighted the strategic timing of the raise, emphasizing the company’s strengthened position following recent acquisitions and resource upgrades.
Directors have confirmed their intention to participate in the entitlement offer, signaling confidence in the company’s prospects. Shareholders who do not participate risk dilution of approximately 11.1% of their holdings. The offer includes provisions for shareholders to apply for shortfall shares beyond their entitlement, subject to board discretion and underwriting arrangements.
Next Steps and Timetable
The entitlement offer opened on 10 October 2025 and is scheduled to close at 5 – 00 pm AWST on 21 October 2025, with new shares expected to be allotted by 28 October 2025. Eligible shareholders are encouraged to carefully review the offer booklet and consider their participation promptly. The company has reserved the right to extend the offer period or accept late applications in accordance with ASX rules.
Bottom Line?
Podium’s fully underwritten entitlement offer sets the stage for critical pilot testing and resource expansion, with market conditions and shareholder uptake poised to shape the next phase of its growth.
Questions in the middle?
- Will the entitlement offer achieve full subscription or trigger significant shortfall allocations?
- How will pilot plant test results influence the timeline and economics of the Parks Reef project?
- What impact will rising PGM prices have on Podium’s valuation and future capital raising needs?
