MetalsTech Raises $9.36M at 25% Discount to Advance Sturec Gold

Capital Injection to Propel Sturec Gold Project

MetalsTech Limited (ASX – MTC) has announced a significant capital raise aimed at accelerating the development of its flagship Sturec Gold Project in Slovakia. The company secured firm commitments to raise approximately $9.36 million through a share placement priced at $0.205 per share, representing a notable 25% discount to the volume weighted average price over the past 15 trading days. This move underscores strong investor confidence from both existing shareholders and new sophisticated investors.

Debt Conversion Strengthens Balance Sheet

In addition to the placement, MetalsTech will issue roughly 9.76 million shares to Minerva Investment Company Limited as part of a debt conversion agreement, settling $2 million owed to Minerva. This strategic conversion not only reduces the company's liabilities but also aligns Minerva’s interests more closely with MetalsTech’s future growth prospects.

Targeted Use of Funds

The freshly raised capital is earmarked for critical next steps in the Sturec project’s development. Key priorities include completing the Pre-Feasibility Study (PFS), which will provide a clearer economic and technical assessment of the project’s viability. Further resource and exploration drilling are planned to expand and better define the gold deposit. MetalsTech also intends to advance environmental studies and community engagement initiatives, reflecting a commitment to sustainable and responsible mining practices. Working capital needs will also be supported, ensuring operational flexibility.

Market Implications and Investor Sentiment

The placement price at a 25% discount signals MetalsTech’s urgency to secure funding while balancing shareholder dilution concerns. Chairman Trevor Benson expressed satisfaction with the strong support from the market, highlighting the company’s readiness to accelerate project milestones. However, investors will be watching closely for updates on the PFS outcomes and drilling results, which will be pivotal in validating the project’s potential and justifying the recent capital injection.

Looking Ahead

With the Sturec Gold Project advancing into more detailed evaluation phases, MetalsTech is positioning itself to move from exploration towards potential development. The success of this capital raise provides a solid financial foundation, but the coming months will be critical in translating these funds into tangible progress and value creation for shareholders.