MTM raises $7.5m from leading institutions to commercialise gallium tech

MTM Critical Metals completes an unsolicited and undiscounted $7.5m placement to commercialise unique gallium recovery tech.

The placement was completed at no discount to the company’s last trading price. Pic: via Getty Images

• MTM Critical Metals raises $7.5m in unsolicited and undiscounted placement

• Company’s FJH technology enabling efficient recovery of critical metals, including gallium

• Funds will be used to accelerate commercialisation and Texan processing plant

 

Special Report: MTM Critical Metals has completed a strategic $7.5m placement at 14.5c per share to institutional investors at a 0% discount to its last trading price, with two leading Aussie funds upping their stakes in a move the company says solidifies its position as a leader in critical metals processing.

The exploration-cum-minerals tech company’s innovative Flash Joule Heating technology that has hooked investors, with the metal recovery and mineral processing method efficiently able to extract metals like lithium from spodumene, gallium from scrap and gold from e-waste.

Most notable is gallium, a critical metal subject to recent Chinese export restrictions, which highlights the importance of this technology to help the US shore up domestic supply.

Beyond the supply implications, this technology also has the potential to revolutionise metal recovery by reducing energy consumption, reagent use, and waste, offering a more economical and environmentally friendly alternative.

The funds from this placement will be directed toward accelerating the scale-up and commercialisation of the FJH technology and will also advance the company’s Texas-based processing plant, aimed at reshoring the refining of critical metals to the US.

That will address key national security and supply chain challenges.

Cornerstone investors back company plans

The placement was unsolicited and rather than completed out of a need to raise funds, was driven by strong interest from high-calibre institutional investors who recognise the long-term potential of the company – and the growing global momentum for onshoring critical metals and industrial technologies to the US.

It was also completed at 0% discount to the last traded price, highlighting the strong investor confidence in the company.

Notably, the placement includes a cornerstone commitment from Pengana Capital, who invested $4 million.

Pengana is an Australia-based fund with significant US presence, and substantial investment in similar ASX and NASDAQ-listed companies that utilise innovative industrial metal processing technologies to revolutionise the critical metals supply chain.

In addition, the company’s largest shareholder Terra Capital also increased its holding further, reinforcing its commitment to the company’s strategic vision and the growth of its FJH technology.

The placement also attracted backing from a substantial international family office, further broadening MTM’s institutional shareholder base.

Recognition of role in critical metals processing

MTM Critical Metals (ASX:MTM)says the placement was completed to align the register with investors who share its vision for future success, representing an efficient way to secure their support and further strengthen the company’s position for sustained growth.

“This strategic placement is a transformative milestone for MTM,” managing director and CEO Michael Walshe said.

“The calibre of investors, including Pengana Capital and Terra Capital, underscores the growing recognition of MTM’s vision to revolutionise critical metals processing.

“Pengana’s investment, as a globally respected fund, is a strong endorsement of our mission and technology.

“We are grateful for their trust and look forward to delivering on our ambitious plans to onshore critical metals refining to the US.”

Demonstration plant design being finalised

The completion of the FJH demonstration plant design is expected by February, to be followed by procurement, construction, and commissioning phases.

In the meantime, ongoing testing programs across multiple critical metal feedstocks, such as rare earths, lithium and e-waste will deliver further validation of the technology.

“We are committed to executing our commercialisation strategy by driving the timely completion of our Texas-based demonstration plant while fostering strategic partnerships with key industry and government stakeholders in the US,” Walshe said.

“The accelerated development of this state-of-the-art processing facility aims to reshore critical metals production, strengthening US supply chain security and reducing reliance on foreign sources.

“Collaborations with esteemed organisations such as New York-headquartered Indium Corporation underscore MTM’s capacity to bolster the domestic critical metals supply chain, a priority amplified by ongoing global geopolitical dynamics.”

This article was developed in collaboration with MTM Critical Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as MTM raises $7.5m from leading institutions to commercialise gallium tech