Impact Minerals Limited (ASX: IPT) has announced a renounceable rights issue to raise up to $5.2 million. The Company’s largest shareholder, holding 17%, has committed to subscribing for their full entitlement.
The offer is structured as a 2-for-7 renounceable rights issue at $0.006 per share. Eligible shareholders will receive one free attaching option for every two shares subscribed. These options have an exercise price of $0.015 and will expire 2.5 years from the issue date.
Mahe Capital Pty Ltd, the Lead Manager and Underwriter, has increased its underwriting commitment from $1 million to $2 million.
Rights Now Trading on ASX
The rights are now trading on the Australian Securities Exchange under the code ASX: IPTR. Investors can review the prospectus on Impact Minerals’ website. A guide on buying and selling these rights will be made available soon.
The rights trading period will end on 14 March 2025, and the offer will close on 21 March 2025 unless extended. Eligible shareholders can also apply for shortfall shares beyond their entitlement.
Managing Director’s Statement
Impact Minerals’ Managing Director, Dr Mike Jones, expressed confidence in the support from shareholders.
“We are very pleased to announce the continued strong support of our largest shareholder in the current renounceable rights issue. This, together with an increase in underwriting from our Lead Manager, Mahe Capital, has given us a very strong start to our capital raising,” Jones stated.
He highlighted that this equity raising is the first opportunity for all shareholders to participate since the acquisition of the Lake Hope High Purity Alumina (HPA) Project.
“A renounceable rights issue ensures that all shareholders, not just professional and sophisticated investors, have the opportunity to participate in this critical phase of the Company’s growth,” he added.
Figure 1: Dr. Mike Jones, Managing Director of Impact Minerals
Jones encouraged shareholders to follow the lead of the largest investor and participate in the rights issue. He also noted that new investors could acquire rights, which are currently trading on the ASX.
Allocation of Capital
The capital raised will support multiple projects, including:
- Arkun Project Exploration: The Company has secured a $180,000 grant from Western Australia’s Exploration Incentive Scheme (EIS). Soil geochemistry data from this project is under analysis.
- Broken Hill Project Exploration: Further development and exploration work are planned.
- Lake Hope HPA Project Development: A project update is being prepared and will be disclosed upon completion.
- General Working Capital: The funds will support ongoing business operations.
- Offer Expenses: Costs associated with the rights issue will be covered.
Figure 2: The Arkun Project Exploration Area of Impact Minerals
Key Details from Previous Announcement
In its earlier statement, Impact Minerals outlined the structure of the renounceable rights issue and the intended use of funds. The Company emphasised its belief that the business is undervalued and that this capital raise is a fair method to support shareholders.
The previous announcement also highlighted Company’s strategic priorities, including accelerating exploration at Arkun and Broken Hill. The Company had received encouraging soil geochemistry data for the Arkun Project, which is currently under review.
Additionally, the statement confirmed that this is the first equity raising extended to all shareholders since the acquisition of the Lake Hope HPA Project. Management reaffirmed its commitment to completing the project’s pre-feasibility study and advancing discussions on potential strategic partnerships.
Future Growth Plans
Impact Minerals aims to strengthen its position in the resources sector by expanding exploration and advancing its key projects. The Company plans to accelerate studies on its Lake Hope HPA Project, focusing on market opportunities in high-purity alumina production.
Impact Minerals is also assessing additional funding options to support long-term development. Strategic partnerships and potential joint ventures remain a priority to drive shareholder value. Management is committed to keeping investors informed about progress and new opportunities.
Shareholder Participation
Eligible shareholders must act before the rights trading period ends on 14 March 2025. The offer will close on 21 March 2025, unless extended.
For more information, investors can contact the Company at rightsissue@impactminerals.com.au.
Investor’s Outlook
Impact Minerals’ recent share price activity has shown positive momentum, with a 14.29% increase in the latest session. The Company’s stock was at $0.008, reflecting investor confidence in the rights issue and future project development.
The market capitalisation currently stands at $24.47 million, positioning Impact Minerals among emerging players in the basic materials sector. The trading volume of 1,475,000 shares indicates continued market interest, aligning with the four-week average volume of 2,636,892 shares.
With a price range of $0.007 to $0.008 and a VWAP of $0.0075, the stock remains actively traded. The Company’s book value per share of $0.005 provides additional support for long-term investors assessing valuation metrics.
