GreenTech’s $5.2M Placement Risks Hinged on Munni Munni Resource Upgrade
GreenTech Metals Ltd has raised $5.2 million to fund drilling and resource upgrades at its Munni Munni Platinum-Palladium-Copper-Nickel project, aiming to validate and expand one of Australia’s largest undeveloped PGE deposits.
- Placement of $5.2 million at 20.4% discount to fund drilling and resource upgrade
- Acquisition of 70% interest in Munni Munni project with option to increase to 80%
- Historical non-JORC resource of 24 Mt at 2.9 g/t 4E PGE to be upgraded to JORC 2012 standard
- Project hosts tier-1 geology analogous to major global PGE districts
- Adjacent Whundo Cu-Zn-Au project adds near-term copper and gold exposure
Strategic Capital Raise for a Major PGE Project
GreenTech Metals Ltd (ASX – GRE) has announced a $5.2 million placement to accelerate exploration and resource development at its Munni Munni project in Western Australia. The capital raise, priced at a 20.4% discount to the recent volume-weighted average price, will fund a drilling campaign, metallurgical test work, and early environmental, social, and governance (ESG) baseline studies. This funding milestone supports GreenTech’s acquisition of a 70% stake in the Munni Munni project from UK-based Alien Metals plc, with an option to increase ownership to 80%.
Unlocking a Tier-1 PGE Resource
Munni Munni is one of Australia’s largest undeveloped platinum group element (PGE) deposits, historically estimated at 24 million tonnes grading 2.9 grams per tonne 4E PGE (platinum, palladium, rhodium, and gold). While these historical estimates are not yet compliant with the JORC 2012 reporting code, GreenTech plans a modest infill and twin drilling program to validate and upgrade the resource. The project’s geology is comparable to world-class PGE districts such as South Africa’s Bushveld Complex and Zimbabwe’s Great Dyke, positioning Munni Munni as a potentially transformative asset.
District Consolidation and Adjacent Assets
GreenTech’s strategy extends beyond Munni Munni, with 100% ownership of the nearby Whundo copper-zinc-gold project. Whundo’s existing JORC-compliant resource of 6.2 million tonnes at 1.12% copper and 1.04% zinc complements the PGE focus, providing near-term exposure to copper and gold. The company intends to incorporate gold credits into Whundo’s resource update and explore shared processing options, enhancing the district’s overall development potential.
Experienced Team and Market Tailwinds
GreenTech’s leadership includes seasoned mining executives and technical experts, notably Dr Kevin Frost, credited with significant nickel-copper-PGE discoveries. The company benefits from a tight capital structure and a board aligned with shareholder interests. Market conditions are favourable, with strong global demand for PGEs driven by catalytic converter needs, hydrogen fuel cell technologies, and constrained supply from traditional producers in South Africa and Russia. PGE prices have surged 50-75% year-to-date, underpinning a sector re-rating that GreenTech aims to leverage.
Clear Pathway to Development
GreenTech has outlined a clear value creation roadmap – an initial resource upgrade to JORC 2012 standards, followed by aggressive step-out drilling to expand the resource footprint, metallurgical studies to optimize processing, and economic studies to advance towards development readiness. The company targets completion of the acquisition and placement by early 2026, with shareholder approval pending for the second tranche of the placement.
Bottom Line?
GreenTech’s $5.2 million raise sets the stage for unlocking Munni Munni’s tier-1 PGE potential amid a tightening global market.
Questions in the middle?
- Will GreenTech successfully upgrade the historical resource to JORC 2012 compliance and expand it materially?
- How will the integration of Whundo’s copper-gold assets influence the overall project economics?
- What impact will ongoing drilling results have on GreenTech’s valuation and investor sentiment?
