Written by 8:00 am Australia, Featured Business News, Mining, SLIDER, Terra Metals

Terra Metals Uncovers Vast Platreef-Style Reefs, Secures AUD 6 Million in Strategic Funding

Terra Metals Uncovers Vast Platreef

Terra Metals Limited’s  (ASX: TM1) (“Terra” or “the Company”) share price has been continuously achieving new highs since the Company announced the discovery of a copper-PGE sulphide reef at its flagship asset, the Dante project. On June 25th, 2024, the share price again increased 10.958% after the Company made an important announcement.

Terra Metals Limited disclosed that it has received and effectively garnered commitments from institutional and sophisticated investors to subscribe for 100,000,000 new ordinary shares at a rate of AUD 0.06 per share for gross proceeds of AUD 6 million.

Key Commitments from the Stakeholders

  • The Company’s largest shareholder, Tribeca, plans to subscribe for approximately AUD 941,000 under the Placement. It is essential to mention here that Tribeca is an asset management and advisory firm functioning in the Asia Pacific region
  • Additionally, Company Directors have committed to subscribing for AUD 174,000, contingent upon shareholder approval
  • Moreover, several new resource-focused institutions have backed the Placement, endorsing the recent discovery at Dante Reefs

The Utilisation of Net Proceeds

The funds raised will be allocated to accelerating exploration and development activities at the Dante Project in Western Australia. These include infill and extensional drilling, metallurgical and mineralogical analysis, geophysical surveys, and discovery drilling of magmatic copper sulphide targets.

Statement from the CEO

Mr Thomas Line, CEO and Managing Director of Terra Metals Limited expressed satisfaction with the robust support received, especially from new resource-focused institutions. Mr Line is a seasoned geologist and executive with more than 12 years of experience in resource development, including four years in leadership roles within junior exploration companies listed on the ASX in Australia, making him the perfect guide for Terra Metals.

On the announcement of the new placement, he mentioned, “We are very pleased with the strong support received for the Placement, including from several new resource-focused institutions. Our recent discovery of the copper-platinum group element sulphide at the Dante Reefs is the first in Australia. The Dante Reefs are mapped to outcrop for at least 42 km of strike across the Dante Project, with most remaining undrilled. Proceeds from the Placement will accelerate our plans to grow and develop this exciting discovery.

Details of Placement

Evolution Capital served as the Lead Manager for the placement. The issue price of AUD 0.06 per share represents a 17.8% discount compared to the last closing price of AUD 0.073 per share (June 20th, 2024).

There will be two tranches to the Placement’s execution:

About the Dante Copper-Platinum Group Elements-Gold-Nickel Project and Its Recent Advancements

The Dante Project features extensive magmatic Cu-PGE-Au-Ni targets and outcropping PGE-Au reef systems in Western Australia’s West Musgrave region. The Company acquired the Dante copper-platinum group element-gold-nickel (“Cu-PGE-Au-Ni”) project in October 2023.

Dante Project Location Showing Neighbouring Companies' Land Holdings And Significant Deposits

Figure 1: Dante Project Location Showing Neighbouring Companies’ Land Holdings And Significant Deposits

Recent advancements in the Dante Project

On June 20th, 2024, Terra Metals announced a groundbreaking discovery of extensive Platreef-style copper-PGE sulphide reefs at Dante Reefs, highlighting substantial copper mineralisation. Titanium, PGEs, gold, and vanadium were other mineralisations discovered during the initial drilling. Ongoing assays and exploration aim to confirm the potential for a substantial sulphide deposit.

Characteristic Dense, Black-Coloured Magmatic Sulphide Mineralisation Observed At The Dante Reefs

Figure 2: Characteristic Dense, Black-Coloured Magmatic Sulphide Mineralisation Observed At The Dante Reefs

On May 1st, 2024, Terra Metals announced that it received two EIS co-funded grants totalling AUD 435,000. The first grant, AUD 220,000, will support diamond core drilling at the Cronus copper-gold sulphide target within the Dante Project. The second grant, AUD 215,000, will fund a high-resolution airborne electromagnetic survey of the project.

Investors Outlook

Terra Metals Limited has uncovered substantial Platreef-style copper-PGE sulphide reefs at Dante Reefs, featuring valuable mineralisation like copper, gold, PGEs, vanadium, and titanium. With copper prices currently at record highs and anticipated to climb further by year-end, this discovery holds promising financial prospects for Terra Metals. As of June 25th, 2024, the Company’s market capitalisation was AUD 21.59 million, with 295.78 million shares on issue.



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