Impact Minerals Limited (ASX: IPT) (“Impact,” “Impact Minerals,” or “the Company) has successfully raised $3,632,736 through its renounceable rights issue, demonstrating strong investor support despite challenging market conditions. The offer, announced on 28 February 2025, officially closed on 28 March 2025, with a 70% take-up rate.
Strong Shareholder Backing
The Company will issue 605,455,505 new shares and 302,727,998 new options. Each option is exercisable at $0.015 and will expire on 28 September 2027 under the ASX code IPTOC.
Managing Director Dr Mike Jones expressed satisfaction with the outcome, stating:
“With a 70% take-up rate, we are very pleased with the outcome of our rights issue in light of the market conditions during the raise.”
Impact Minerals also acknowledged its largest shareholder, its Directors, and other investors who contributed to the funding round.
Figure 1: Dr. Mike Jones, the Managing Director, discusses the facts and significance of the capital raise.
Final Allocations and Shortfall Placement
Impact received $2,429,935 from existing shareholders and $1,202,802 from the shortfall. Investors subscribed to 404,988,612 shares through rights entitlement, while 200,466,893 shares remained in the shortfall. The Company may place these shortfall shares within three months at its discretion.
Figure 2: Table showing the final allocations
Lead Manager and Underwriter Mahe Capital Pty Ltd will receive 36,327,363 additional options as per the rights issue prospectus.
Use of Funds: Driving Key Projects Forward
The funds will support Impact’s two major projects:
- Lake Hope High Purity Alumina (HPA) Project – Development of the Lake Hope High Purity Alumina (HPA) Project and completion of the Pre-Feasibility Study (PFS).
- Caligula Copper-Nickel-Platinum-Gold Project – Upcoming drilling program backed by Western Australia Government co-funding.
Dr Mike Jones confirmed that drilling would commence soon, stating:
“We look forward to completing the Pre-Feasibility Study for the Lake Hope High Purity Alumina Project and undertaking a drill programme at our exciting Caligula copper-nickel-platinum-gold target, where we have WA Government co-funding. The programme will start in the coming weeks on receipt of statutory approvals.”
Comparison to Initial Expectations
The original goal was to raise up to $5.2 million through a 2-for-7 renounceable rights issue priced at $0.006 per share. The discounted pricing was designed to attract investors, offering:
- A 33% discount to the last closing price of $0.009.
- A 43.4% discount to the 90-day VWAP of $0.0106.
- 1 free attaching option for every 2 new shares subscribed.
Despite not reaching the full target, the $3.63 million raised ensures key projects stay on track.
What This Means for Investors
The strong 70% participation rate reflects confidence in Impact’s long-term prospects. With quoted options (IPTOC) and the upcoming drill program, investors may see potential upside.
Chairman Peter Unsworth previously highlighted the importance of this funding round:
“This equity raising marks a pivotal moment for the Company and its shareholders.”
Next Steps for Impact Minerals
With the rights issue completed, Impact will now focus on:
- Finalising the Lake Hope PFS for a potential move to the next phase.
- Starting drilling at Caligula after regulatory approvals.
- Strategically placing shortfall shares over the next three months.
Investors will closely monitor the Company’s progress in the coming weeks as it advances these critical projects.
Investor Outlook: Strong Capital Backing Amid Market Volatility
Impact Minerals Limited (ASX: IPT) has successfully secured $3.63 million through a renounceable rights issue, strengthening its financial position for advancing the Lake Hope Pre-Feasibility Study (PFS) and the Caligula drill programme. Despite the global market facing challenges due to policy changes, supply chain disruptions, and large-scale selloffs, Impact Minerals has demonstrated resilience by successfully raising $3.63 million through its rights issue. This strong investor backing highlights confidence in the Company’s strategic direction. With secured funding, Impact Minerals is well-positioned to advance its key projects, including the Lake Hope Pre-Feasibility Study and the Caligula drilling program, ensuring continued progress despite market uncertainties.
Despite recent price consolidation at $0.006, the Company maintains a market capitalisation of $18.58 million, reflecting investor confidence. The stock has experienced a surge in trading volume, peaking at 5.9 million shares on March 28, indicating heightened interest.
Figure 3: Highest trading volume on 28 March 2025, in the last 5 days
With funding secured, Impact Minerals is well-positioned for potential upside as exploration and feasibility studies progress.
