Morella Corporation has raised A$2.1 million through a placement to fund drilling at its Mt Edon Rubidium–Lithium Project, marking a key step toward defining a maiden mineral resource estimate.
- A$2.1 million placement at A$0.04 per share with free-attaching options
- Drilling commenced at Mt Edon targeting rubidium and lithium mineralisation
- Placement supported by major shareholders including Interra Resources and company directors
- Funds allocated to exploration at Mt Edon, Mallina, Tabba Tabba, and corporate costs
- Placement to be issued in two tranches, with second tranche subject to shareholder approval
Funding Boost for Critical Minerals Exploration
Morella Corporation Limited (ASX: 1MC) has successfully secured firm commitments for a A$2.1 million placement, issuing approximately 52.5 million new shares at A$0.04 each. This capital raise comes with free-attaching options exercisable at A$0.06, providing investors with additional upside potential. The placement pricing reflects an 11.4% discount to the recent volume weighted average price, a common practice to incentivise participation in such raises.
Drilling Underway at Mt Edon
Crucially, the funds raised will underpin Morella’s ongoing drilling program at the Mt Edon Rubidium–Lithium Project in Western Australia. The company has commenced a 3,000-metre reverse circulation drilling campaign designed to increase drill density within the core mineralised zone and test extensions of the rubidium-bearing pegmatite system. This work aims to support the preparation of a maiden Mineral Resource Estimate (MRE), a significant milestone that could unlock further value for shareholders.
Mt Edon stands out as a differentiated critical minerals asset, hosting rubidium; a rare and strategically important metal; alongside lithium, which is in high demand for battery technologies. The project is operated under a joint venture with Elevra Lithium, with Morella holding the majority interest.
Strong Shareholder Support and Strategic Allocation
The placement has garnered strong backing from both new and existing investors, including major shareholder Interra Resources Limited and Morella’s own directors. This endorsement signals confidence in the company’s strategy and the potential of its critical minerals portfolio.
Funds will not only support drilling and resource definition at Mt Edon but also ongoing exploration activities at the Mallina and Tabba Tabba Projects. Additionally, part of the proceeds will cover corporate costs and general working capital, ensuring operational flexibility as Morella advances its projects.
Placement Structure and Next Steps
The placement will be executed in two tranches. Tranche 1, comprising approximately 39.4 million shares, will settle shortly using the company’s existing placement capacity. Tranche 2, involving around 13.1 million shares and the issue of options, is subject to shareholder approval at an Extraordinary General Meeting scheduled for late April 2026.
Investors will be watching closely for assay results from the drilling program, which is expected to take about three weeks, as well as the outcome of the shareholder meeting. These developments will be pivotal in shaping Morella’s near-term trajectory and market perception.
Bottom Line?
Morella’s successful raise and drilling commencement set the stage for critical resource milestones, but shareholder approval and assay results will be key to sustaining momentum.
Questions in the middle?
- Will the maiden Mineral Resource Estimate at Mt Edon confirm significant rubidium and lithium grades?
- How will the market respond to the shareholder vote on the second tranche and options issuance?
- What downstream opportunities might Morella pursue given the strategic importance of rubidium?