ASX-listed zinc play Metalicity (ASX: MCT) is seeking to dual list on the TSX Venture Exchange after raising A$2.61 million via a brokered private placement to high-profile North American institutional funds and Australian resource funds.
The ASX-listed company engaged Echelon Wealth Partners Inc and Paradigm Capital Inc to co-lead the placement of 58.25 million shares at 4.5c per share, a 6% discount to Friday’s closing price, with a 1 for 2 free attaching option exercisable at A8c with a five-year term.
Funds raised will be used to undertake resource and exploration drilling at Napier Range zinc project and progress Pre-Feasibility Studies (PFS) at Admiral Bay zinc project.
Proceeds will also be used to progress due diligence and evaluation of a dual listing on the TSX Venture Exchange.
According to Metalicity Managing Director Matthew Gauci, the significant interest from North American institutional funds is a vote of confidence in Metalicity’s plans to list on the TSXV.
We are pleased to welcome to the register key North American institutional funds as the Company undertakes due diligence and evaluation of a TSXV listing as well as drilling and feasibility studies on our 100% owned Napier Range Zinc Project and Admiral Bay Zinc Project, while considering a spin out of our cobalt and lithium projects,”he said.
Completion of the North American Private Placement is subject to a number of conditions, including due diligence by the Agents, the negotiation and execution of a definitive Agency Agreement and Subscription Agreements.
The closing date for the private placement is scheduled to be on or about 14th February 2018.
The news comes after the company completed the acquisition of high grade Napier Range project in the Kimberley region with resource and exploration drilling being organised for this quarter at the Wagon Pass deposit.
Pre-liminary economic assessments are currently being completed at its Admiral Bay project where China Non-Ferrous Metals finished reviewing a pre-feasibility study for the project last month.