Alma Metals Secures $4M Oversubscribed Placement to Boost Briggs Copper Drilling

Oversubscribed Placement Reflects Investor Confidence

Alma Metals (ASX:ALM) has successfully closed a $4 million placement at 1 cent per share, attracting strong demand from institutional and sophisticated investors, including Lowell Resources Funds Management. The oversubscription forced the company to scale bids, signalling robust market appetite for exposure to the Briggs Copper Project. Managing Director Frazer Tabeart highlighted this as a vote of confidence in the project’s potential amid favourable copper market fundamentals.

The placement is split into two tranches: Tranche 1, comprising 368.2 million shares issued under existing ASX Listing Rule capacity, and Tranche 2, consisting of 31.8 million shares reserved for directors and associates, subject to shareholder approval expected in June 2026. This director participation, totalling $318,000, underscores management’s alignment with shareholder interests.

Capital to Accelerate Drilling and Pre-Feasibility Work

Proceeds will primarily fund an aggressive drilling campaign targeting resource growth and the conversion of Inferred Resources to Indicated status at Briggs. This upgrade is critical to underpinning the Pre-Feasibility Study (PFS) currently underway. Alongside drilling, funds will support metallurgical test work and environmental baseline surveys, all essential steps in advancing the project’s development timeline.

The capital raise follows Alma’s recent initiation of a major drilling program designed to expand and upgrade its 2 million tonne copper resource, placing Briggs among Australia’s more significant undeveloped copper assets. This drilling campaign, integrated with metallurgical and environmental studies, aims to refine the resource and support the PFS process major drilling program targets resource upgrade.

Strengthening Position in Joint Venture with Canterbury Resources

Post-placement, Alma will hold approximately $5.6 million in cash and $3.1 million in liquid investments, providing a solid financial runway to meet exploration and evaluation commitments under its Joint Venture Agreement with Canterbury Resources. Alma currently owns 51% of Briggs and is progressing toward earning a 70% interest. Once this threshold is reached, both parties must contribute proportionally to future expenditures or face dilution, standard industry practice.

This funding milestone is pivotal as it ensures Alma can fully execute its exploration strategy and maintain its path toward increased project control. The company’s ability to draw down on its existing financial resources, combined with the new capital, positions it well to advance the Briggs project amid tightening global copper supply dynamics robust 2 million tonne copper resource.

Discounted Issue Price and Market Reception

The shares were offered at a 16.7% discount to the last traded price and a 23.8% discount to the April volume-weighted average price, a typical concession to incentivize rapid capital raising. While such discounts can sometimes trigger mixed market reactions, the oversubscription suggests investors are prioritising long-term project potential over short-term pricing concessions.

Director participation also signals internal confidence, with Executive Chairman Alasdair Cooke subscribing for $225,000 worth of shares. This personal stake, alongside other directors’ involvement, may reassure investors about management’s commitment to delivering on the project’s promise.