Written by 9:35 pm Australia, Boab Metals, Featured Business News, Mining, SLIDER, Top Stories

Boab Metals Secures Strategic Funding: Signs ATM Agreement with Acuity Capital

BOAB Metal Ltd
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In the recent announcement, Boab Metals Limited (ASX: BML) (“Boab” or the “Company”) has formalised an At-the-Market Subscription Agreement (ATM) with Acuity Capital, ensuring access to standby equity capital of up to AUD 5 million until January 31st, 2027.

Boab possesses the authority to ascertain the optimal quantity of shares available for issuance, establish the minimum issue price, and determine the precise timing for each subscription. Crucially, it is essential to note that Boab is not bound to utilise the ATM facility, and the company maintains the prerogative to agree with any point without incurring any associated costs or penalties.

The arrangement with Acuity Capital in no way constrains Boab’s capacity to secure capital through alternative means, affording the company a high degree of flexibility in crafting its financial strategy.

The ultimate issue price is determined as the higher of the designated floor price or a price with a discount of up to 10% to the Volume Weighted Average Price (VWAP) over a timeframe specified by Boab.

To fortify the ATM’s security, Boab has committed to allocating 9,000,000 fully paid ordinary BML shares from its LR7.1 capacity to Acuity Capital, with no cash consideration required for this arrangement. In the event of early termination or maturity of the ATM, Boab retains the option to repurchase and subsequently cancel the shares used as security, all contingent upon obtaining shareholder approval and with no additional cash outlay.

This arrangement with Acuity Capital affords Boab Metals Limited a versatile and elective funding mechanism, enabling the company to secure standby equity capital while maintaining control over vital terms and conditions.

Investor’s Outlook

  • As of December 22nd, 2023, Boab Metals’ share price stood at AUD 0.19 per share, with a 52-week average range of AUD 0.059 to AUD 0.320.
  • The Company’s market capitalisation was AUD 33.148 million on December 22nd, 2023.
  • As of December 22nd, 2023, Boab Metal has issued over 174.46 million shares.
  • The At-the-Market Subscription Agreement (ATM) with Acuity Capital fortifies Boab Metals’ financial position, providing up to AUD 5 million in standby equity capital.
  • The flexibility in capital raising, pricing mechanisms, and security options present a strategic advantage, offering investors increased confidence in the company’s financial stability and growth potential.

About the Company

Boab Metals Limited is a Western Australian exploration and development company operating in Australia and South America. Primarily concentrated on the Sorby Hills Lead-Silver-Zinc Joint Venture Project in WA, Boab holds a 75% interest. In comparison, the remaining 25% is contributed by Henan Yuguang Gold & Lead Co. Ltd.

Location of the Boab Metals’ Sorby Hills Project

Location of the Boab Metals’ Sorby Hills Project


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