GreenTech Metals raises $3.4m to ramp up Whundo drilling in time for Xmas

GreenTech Metals has raised $3.4m from investors to drill exciting copper prospects in the Pilbara.

Pic: Getty Images

• GreenTech Metals to raise $2.3m via a placement, $1m via drill-for-equity agreement

• Company also nabbed $140,000 grant from WA State Govt for Whundo

• Drilling is scheduled to commence at the project next month

 

Special Report: GreenTech Metals has received firm commitments from sophisticated and institutional investors to raise around $2.3m via a placement at 8c per share to progress its staged exploration plans at the Whundo copper project in the Pilbara.

The placement price represents a 17.5% discount to the last traded price of 9.7c and a 31.3% discount to the 15-day VWAP of 11.6c.

GreenTech Metals (ASX:GRE) has also secured a $1m drill-for-equity agreement  with Topdrill, where up to 35% of future direct drilling costs can be part paid in GRE shares.

The explorer has also nabbed a $140,000 grant as part of the WA Government Exploration Incentive Scheme to co-fund drilling of the Shelby target at Whundo.

With these funds, the plan is to kick off drilling at Whundo next month, with minor work also scheduled at the company’s Ruth Well and Osborne JV lithium projects.

Drilling kicks off in December

Whundo already hosts 6.2Mt at 1.12% copper and 1.04% zinc in resource, and the project is also a volcanogenic massive sulphide deposit, which can typically form in clusters.

This means there’s potential for scale at the project, and with grades of up to 4.6% copper in recent assays, the company is confident the project could be poised to deliver resource growth.

“GreenTech is pleased to have received strong support for the placement, including from existing major shareholders,” GRE executive director Tom Reddicliffe said.

“Combined funds raised from the placement, the drill-for-equity agreement and the EIS grant will be used to progress exploration at the rapidly growing Whundo copper project.

“Investors can expect an update on the planned drill program early next week, with drilling to commence in December.”

Whundo is located in an area dotted with VMS copper finds and processing options, including an alliance with Anax Metals, which owns the nearby Whim Creek processing plant.

While VMS copper tends to be smaller in scale than the porphyries that deliver the bulk of output in large producers like Chile and Peru, they are higher in grade and can be commercialised quickly at lower cost.

As expected shortages emerge for the energy transition metal, those projects will be able to capitalise on higher prices as large projects designed to cover the shortfall face long ramp up times.

This article was developed in collaboration with GreenTech 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.