Future Metals NL raises £500,000 to boost London listing (Authored by Kunal Sawhney, CEO, Kalkine)
Future Metals NL, the AIM-listed exploration company, has announced that it has raised £500,000, which it will use to boost its profile in the UK market. The company has also hired a British investor relations firm to help it increase its market presence.
For the funds, the company’s 7.14 million new and fully paid ordinary shares have been subscribed by high-net-worth investors priced at 7p per share. The price represents a 12% premium to the company’s mid-market closing price on 30 September. Investors also received one free-attaching warrant with every three placement shares, exercisable at 6p with an expiry date of 11 June 2024.
The net proceeds will also be used for the company’s exploration program searching for Ni-Cu-PGE sulphides at Panton, which it acquired in June 2021. Panton is Future Metals’ cornerstone project situated in northern Western Australia.
There has been a long interest in platinum group metals or PGM companies in Britain. Future Metals’ motive behind the fundraising is to cash in on the opportunity and increase the liquidity of its London listing.
The latest announcement from the company comes after recently launching a A$5 million placement and A$1 million share purchase plan to support exploration at Panton. The terms of the latest placement are the same as these two.
Welcoming the new investors as shareholders, the company’s MD and CEO, Jardee Kininmonth, said that the London Stock Exchange has historically been a lucrative market for firms in this sector, adding that Future Metals has the potential can attract significant interest in the UK.
Along with the placement announcement, the company also posted its final results for 30 June 2022. The company said it was its first full year of operations and also a very active period for it following the acquisition of the Panton PGM-Ni Project.
For the period, the company reported a loss of US$4.3 million, which is significantly lower than the US$6.3 million it posted in the previous year.
