Eastern Metals Raises $5M to Acquire Raptor Resources and Re-List on ASX

Eastern Metals’ Strategic Pivot

Eastern Metals Limited, soon to be renamed Raptor Metals Ltd, has launched a prospectus to raise up to AUD 5 million through a public offer priced at 2 cents per share. This capital raising is designed to fund the company’s acquisition of 100% of Raptor Resources Limited, a move that will significantly broaden Eastern Metals’ asset base and shift its operational focus.

The acquisition includes Raptor’s portfolio of exploration projects in Canada’s prolific Bathurst Mining Camp and Western Australia’s goldfields, encompassing the Chester, Turgeon, and Emu Lake Projects. These assets are prospective for copper, zinc, gold, nickel, and rare earth elements, complementing Eastern Metals’ existing Northern Territory and New South Wales projects.

Re-Compliance and Capital Structure

Due to the material change in the nature and scale of its activities, Eastern Metals’ securities have been suspended from trading since April 2025. The company must re-comply with Chapters 1 and 2 of the ASX Listing Rules to regain official quotation. The prospectus outlines a comprehensive capital structure post-acquisition, including the issue of up to 250 million new shares, various classes of options, and performance rights tied to exploration milestones.

Secondary offers are also included for Raptor shareholders and vendors, as well as options for the lead manager, Euroz Hartleys Limited, who is assisting with the capital raising. The company has sought and received in-principle waivers from ASX for certain listing rule conditions related to the offer price and option exercise prices, which are below the usual 20-cent threshold, reflecting the current market realities.

Exploration Outlook and Risks

Eastern Metals plans to aggressively explore the combined project portfolio, with a two-year budget allocating significant funds to diamond drilling, geophysical surveys, and metallurgical test work. The company’s strategy aims to transition from an explorer to a developer by systematically advancing these assets.

However, the prospectus is candid about the risks involved, including the uncertainty of meeting ASX re-admission requirements, potential dilution of existing shareholders by up to 88%, and the inherent exploration and development risks typical of early-stage mining ventures. The independent expert’s report concludes that while the transaction is not fair to non-participating shareholders due to dilution, it is reasonable considering the strategic benefits and alternatives.

Governance and Management Changes

The acquisition will also bring changes to the board and management, with Brett Wallace appointed as Managing Director and Adam Sierakowski as Non-Executive Chair, alongside existing director Ian White. The new leadership team brings a blend of legal, geological, and corporate expertise aimed at steering the company through this transformative phase.

Legal and technical due diligence has been thorough, with independent geologist and solicitor reports confirming the status and prospects of the tenements involved. The company also outlines its commitment to environmental and social governance, recognizing the importance of sustainable and responsible exploration practices.