Trek Metals has raised $15 million through a strongly supported share placement to fund a major drilling campaign at its promising Kuro manganese discovery in Western Australia’s Kimberley region.
- Placement raised $15 million at $0.15 per share with strong investor demand
- Introduction of prominent Australian institutional investors including Terra Capital
- Directors to participate with $1.45 million subject to shareholder approval
- Funds to support extensive Reverse Circulation and diamond drilling starting April 2026
- Exploration to focus on high-grade manganese mineralisation and geophysical targets
Strong Capital Raise Sets Stage for Major Exploration
Trek Metals Limited (ASX – TKM) has successfully secured $15 million in a share placement priced at $0.15 per share, a move that underscores strong investor confidence in the company’s high-grade Kuro manganese discovery at its Christmas Creek Project in Western Australia’s Kimberley region. The placement attracted significant demand from both existing sophisticated shareholders and new institutional investors, notably Terra Capital, which took a cornerstone position in the raise.
The capital injection will underpin an ambitious drilling program scheduled to commence in April 2026, featuring both Reverse Circulation (RC) and diamond drilling rigs. This program aims to test the extent and grade of manganese mineralisation beneath recently identified surface outcrops, where rock chip samples have returned exceptional grades up to 60.1% manganese.
Institutional Support and Director Participation
Alongside the influx of new institutional investors, Trek’s board has demonstrated its commitment by agreeing to participate in the capital raise to the tune of $1.45 million, pending shareholder approval. This dual tranche structure; with the first tranche completed under existing placement capacity and the second subject to approval; reflects a balanced approach to funding while maintaining shareholder interests.
Alpine Capital Pty Ltd acted as sole lead manager for the placement and will receive unlisted options as part of their mandate, aligning their interests with Trek’s ongoing exploration success. The new shares issued will rank equally with existing shares, ensuring no preferential treatment.
Exploration Plans and Broader Project Potential
The funds raised will accelerate multiple work streams at Christmas Creek beyond drilling. These include heritage surveys, integration of recent geophysical data such as gravity and helicopter electromagnetics, and refined drill targeting through advanced modelling. Metallurgical test work on the manganese mineralisation will also be undertaken to assess processing potential.
Moreover, Trek intends to continue exploration for gold, base metals, and rare earth elements within the broader project area, signalling a diversified approach to unlocking value from Christmas Creek’s mineral endowment.
Outlook and Market Implications
CEO Derek Marshall highlighted the significance of the capital raise as a pivotal moment for Trek, enabling a multi-rig drilling campaign that could rapidly advance the Kuro discovery towards a maiden Mineral Resource. The introduction of institutional investors is also a vote of confidence in the company’s strategy and the quality of its assets.
While the drilling results and metallurgical outcomes remain to be seen, this funding round positions Trek Metals well to capitalise on growing demand for manganese, a critical metal in battery and steel industries.
Bottom Line?
With fresh capital and institutional backing, Trek Metals is poised to transform its Kuro discovery into a significant manganese resource.
Questions in the middle?
- How will the upcoming drilling results impact Trek Metals’ valuation and resource estimates?
- What metallurgical characteristics will the manganese mineralisation exhibit, and how might this affect processing costs?
- Will the new institutional investors influence Trek’s strategic direction or future capital raising plans?