High-Tech Metals has raised $10.7 million through the exercise of nearly 43 million options, bolstering its push towards gold production at the Dam-Damsel project and expanding exploration across its vast Western Australian tenure.
- Raised $10.7 million via exercise of 42.9 million listed options
- Funds to accelerate Dam-Damsel project towards production readiness
- Exploration drilling planned across 1,150 km² Mt Fisher-Mt Eureka tenure
- Wagtail deposit mining fully funded by SSH Mining, supporting production pipeline
- 9.7 million options lapsed unexercised, leaving 42.9 million new shares issued
Capital Injection Strengthens Production Ambitions
High-Tech Metals Ltd (ASX, HTM) has successfully raised $10.7 million through the exercise of 42.9 million listed options, a move that significantly strengthens its financial position as it advances towards gold production. The capital raise comes at a pivotal moment for the company, enabling it to accelerate development activities at its Dam-Damsel gold project in Western Australia.
The funds will be directed towards drilling programs and the initiation of mining lease applications at Dam-Damsel, positioning it as the company’s second production asset following the Wagtail deposit. Notably, mining at Wagtail is already fully funded by SSH Mining, a subsidiary of SSH Group Ltd (ASX, SSH), providing a solid foundation for High-Tech Metals’ production pipeline.
Expanding Exploration Across a Vast Gold Province
Beyond advancing Dam-Damsel, High-Tech Metals plans to deploy part of the proceeds to exploration drilling across its extensive 1,150 square kilometre landholding spanning the Mt Fisher and Mt Eureka projects. This region, situated within the prolific Yilgarn Craton, remains heavily under-explored, offering multiple high-priority brownfields targets that could add significant ounces to the company’s resource base.
CEO James Merrillees expressed optimism about the strong option exercise uptake, viewing it as a clear endorsement of the company’s strategy. He highlighted the flexibility the capital provides to progress both near-term production goals and broader exploration ambitions, which are critical to sustaining growth and extending the production pipeline.
Shareholder Confidence and Future Prospects
The exercise of 42.9 million options out of 52.6 million on issue reflects robust shareholder confidence in High-Tech Metals’ development trajectory. Meanwhile, 9.7 million options lapsed unexercised, slightly trimming the potential dilution. The newly issued shares have been formally lodged with the ASX, ensuring transparency and compliance with listing rules.
High-Tech Metals’ strategy to rapidly advance mining leases and establish early cash flow aims to create a self-funding model for high-impact exploration. The company’s experienced technical and corporate team is well-positioned to unlock the full potential of its gold projects, which are located in a mining-friendly jurisdiction with secure tenure and no known land access impediments.
As the company moves forward, market participants will be watching closely for drilling results and progress on mining lease applications, which will be key indicators of how quickly High-Tech Metals can transition from exploration to production.
Bottom Line?
With $10.7 million secured, High-Tech Metals is poised to accelerate its gold production journey; but the pace of exploration success will be critical to sustaining momentum.
Questions in the middle?
- What are the expected timelines for Dam-Damsel to reach production readiness?
- How will exploration drilling results across Mt Fisher-Mt Eureka impact resource estimates?
- What are the potential risks or challenges in securing mining leases for Dam-Damsel?