Kali Metals Issues 39M Shares at $0.18 to Fund Marble Bar and Higginsville Projects
Kali Metals has raised $7 million through a share placement to fund further exploration at its promising Marble Bar Gold Project and lithium assets in Higginsville. The capital injection underscores investor confidence in the company’s growth strategy.
- Raised $7 million via placement of 39 million shares at $0.18 each
- Funds earmarked for Phase II drilling at Marble Bar Gold Project and lithium exploration at Higginsville
- Placement supported by institutional and sophisticated investors, including directors
- Shares issued at a slight discount to recent volume-weighted average prices
- Settlement expected mid-February with shares ranking equally to existing stock
Capital Raise to Accelerate Exploration
Kali Metals Limited (ASX – KM1) has successfully completed a $7 million placement, issuing 39 million new shares at $0.18 each. This capital raise is designed to fuel the next phase of exploration at its Marble Bar Gold Project and Higginsville Lithium Project in Western Australia. The placement attracted strong support from both new and existing institutional and sophisticated investors, signaling market confidence in Kali’s exploration potential.
Building on Early Success at Marble Bar
The funds will primarily support a Phase II drilling program at Marble Bar, where initial drilling delivered encouraging shallow, high-grade gold results. Managing Director Paul Adams highlighted that this next drilling phase aims to systematically expand the known gold system, targeting both strike extensions and down-dip growth. The company’s approach reflects a methodical strategy to convert early promising results into a more defined resource.
Parallel Lithium Exploration at Higginsville
Alongside gold, Kali Metals is advancing exploration across its lithium portfolio, particularly at Higginsville. Lithium remains a critical mineral with growing demand driven by the electric vehicle and battery sectors. The placement proceeds will also fund drilling and technical work in this area, underscoring Kali’s diversified resource focus and potential to tap into multiple commodity markets.
Placement Terms and Market Implications
The shares were issued at $0.18, representing no discount to the last closing price but a 16.2% discount to the 5-day volume weighted average price. Directors have subscribed for $95,000 worth of shares, pending shareholder approval, aligning management interests with those of investors. The new shares will rank equally with existing shares, with settlement expected by mid-February, ensuring a swift injection of funds to support ongoing exploration activities.
Looking Ahead
Kali Metals’ extensive portfolio spans over 4,000 square kilometres across key mineral provinces in Western Australia and the eastern states. This capital raise and the planned exploration programs represent a critical step in unlocking value from these assets. Investors will be watching closely for drilling results and further updates as Kali advances its projects toward resource definition and potential development.
Bottom Line?
Kali Metals’ $7 million raise sets the stage for a pivotal exploration phase that could reshape its resource outlook.
Questions in the middle?
- What specific targets and timelines are planned for the Phase II drilling at Marble Bar?
- How will lithium exploration results at Higginsville influence Kali’s strategic focus?
- What are the potential risks if drilling results do not meet expectations?
