Nimy raises $2.75m for exploration boost at WA gallium discovery

Nimy Resources will raise $2.75m at 8.5 cents per share to fund current and planned drilling at its Block 3 gallium discovery in WA.

Looking west: NIM is ramping up its WA hunt for gallium, which is on the critical metals list for Australia, USA, EU, India, Japan, Republic of Korea and the UK. Pic: Getty Images

• Nimy Resources to raise $2.75m to accelerate exploration at Block 3 gallium discovery

• Demand and prices have soared since China established export restrictions

• Company aims to establish a maiden JORC resource for the project

Special Report: Nimy Resources has received firm commitments to raise $2.75m at 8.5 cents per share from sophisticated and professional investors to fund exploration at its WA gallium discovery – Block 3.

Typically produced as a by-product of alumina and zinc refining, Block 3’s high grades and mineralogical characteristics mean it could shape up as a rare primary source of the metal, known for its performance-enhancing properties in semiconductor chips, solar panels, EV and wind turbine motor magnets, LCDs and more.

The metal’s supply chain is also ~98% controlled by China, placing strategic importance on discoveries outside of the Middle Kingdom.

Nimy Resources (ASX:NIM) said the funds raised from this placement will advance the Block 3 gallium discovery by accelerating the current and next round of drilling, progressing towards a maiden resource estimate, along with offtake discussions, and supporting metallurgical test work.

Phase 2 drilling at Block 3 is well advanced and the first samples have been sent for assay.

Proving up project’s economic potential

Gallium prices have surged to $1,012/kg, driven by China’s export ban that has

squeezed global semiconductor supply chains, making Block 3’s exploration target of 9.6-14.3Mt at 39-78ppm gallium even more enticing.

Plus, the company already has a partnership with M2i Global in the back pocket, a group which could facilitate potential sales to the US Department of Defense should the project prove economic.

“We are very pleased with the positive market response received. Nimy is focused on delivering a JORC compliant gallium resource to underpin the development of our high grade gallium discovery at Block 3,” Nimy managing director Luke Hampson said.

“Nimy is positioning to be a major player supplying high grade gallium into high growth markets as the US and the EU seek security of supply into gallium reliant industries such as semiconductor manufacture and defence force applications”.

This article was developed in collaboration with Nimy Resources, 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.