Terra Metals locks in $4m to fast-track Dante drilling

Backing from two long-term resources-focused strategic investors will enable Terra Metals to launch an extensive drilling campaign at its Dante polymetallic project in WA.

Terra Metals has welcomed two strategic investors to its shareholder register, Golden Energy and Resources as well as Matthew Latimore, ahead of resource drilling at Dante. Pic: Getty Images

Special Report: Terra Metals has attracted funding from two strategic investors with extensive operational expertise and long-term commitment to resource development to fund a drilling blitz at the Dante polymetallic project in WA. 

• Terra raises $4m in strategic placement to investors 
• The placement was strongly supported by Golden Energy and Resources along with Matthew Latimore 
• Funds will be used for extensional and infill drilling at Dante ahead of a maiden resource estimate

A $4 million placement – comprising more than 114.2 million shares at 3.5 cents each – was supported by Golden Energy and Resources (GEAR), owned by Singapore’s Fuganto family, and Matthew Latimore, founder and president of M Resources.

GEAR operates metallurgical coal assets in Queensland and NSW through ASX subsidiaries Stanmore Resources (ASX: SMR) and Illawarra Coal Holdings, as well as gold through a 50% interest in the Ravenswood gold mine – Queensland’s largest – which produces about 200,000oz of gold annually. 

It is also part of Sinar Mas, one of the largest and most established conglomerates in Indonesia. 

M Resources holds a diversified portfolio of strategic interests, including nearly 5% of Stanmore Resources, a 55% stake in underground mining services company Mastermyne Limited (ASX: MYE), a 50% interest in Magnetic Infrastructure Group (ultimate owner of OneRail Australia Holdings), and 12% ownership of GM Illawarra Metallurgical Coal Complex. 

Terra Metals’ (ASX:TM1) largest shareholder, Tribeca Investment Partners, also committed to participate in the placement to maintain its 15% stake in the company, pending shareholder approval.

Exploration and drilling at Dante 

TM1 plans to use the funds to continue exploration and development of the Dante project, where more than 17,000m of drilling has been carried out to date. 

So far, this work has confirmed a laterally extensive, stratiform reef-style system with mineralisation mapped over 10km of strike and extending from surface to 250m depth. 

Additional reefs have been identified across +80km of strike, with recent tenement acquisitions extending the potential to hundreds of kilometres. 

A maiden mineral resource estimate is in the works, with a site visit by independent South African resource consultants planned later this month to prepare the MRE. 

‘Validation of immense scale potential’ 

TM1 CEO and managing director Thomas Line said this was a major milestone for the company and strong validation of the Dante project. 

“Dante has proven exceptional metallurgical performance from first-pass testwork, with optimisation continuing,” he said. 

“The maiden resource estimation is also currently underway, based on 10% of the outcropping strike. 

“This investment from strategic investors is a clear validation for the immense scale potential of Dante,” Line added. 

“We will use these funds to drill out the exploration upside and show resource potential of the Dante project.” 

Big potential for ‘globally significant’ resource 

GEAR’s executive director and chief investment officer Mark Zhou said Dante was clearly a standout district-scale opportunity for a globally significant critical minerals resource. 

M Resources founder and president Matthew Latimore said he was pleased to make this investment into Terra Metals and support the development of Dante. 

“This investment is aligned with M Group’s long-term growth strategy in minerals essential to the energy transition and future economy,” he said. 

“It also complements our existing Queensland-based vanadium and graphite assets held through M Critical Minerals.” 

This article was developed in collaboration with Terra 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 Terra Metals locks in $4m to fast-track Dante drilling