Artemis raises AUD 2.9m to fund further exploration

10th May 2024 11:29

(Sharecast News) - Artemis Resources announced on Friday that it has successfully secured firm commitments for a capital raising of AUD 2.87m (£1.51m), priced at AUD 0.01275 per share, with significant support reported from both sophisticated and institutional investors.

The AIM-traded firm said the placing comprised the issue of 225,686,275 new shares, split into two tranches.

Initially, 32% of the placing shares would be issued, with the remaining 68% pending the creation of additional capacity at a general meeting.

Additionally, the firm said it would issue one free attaching warrant for every two placing shares, totaling 112,843,137 warrants.

The warrants, with an exercise price of AUD 0.025 and an expiry date of 9 March 2026, would be listed on the ASX.

Artemis said the issue price represented a 29% discount to the 20-day volume weighted average price (VWAP).

The proceeds from the capital raise would be allocated towards further exploration programmes, particularly in lithium and gold.

That would include conducting additional ground reconnaissance for lithium mineralised areas and seeking heritage clearances for maiden drilling at the Mt Marie lithium prospect.

Additionally, the company said it planned to secure heritage clearances at Lulu Creek for priority target drilling in gold exploration.

Artemis said it would also continue its work working with Greentech Metals on the Osborne joint venture.

Following the capital raise, Artemis said it would have around AUD 7m additional funds if all warrants were exercised.

"It is pleasing to have received this level of support from shareholders," said executive director George Ventouras.

"With the gold prospects that have been identified and the further prospectivity of the greater tenement area, we are looking forward to additional field work in conjunction with relevant surveys to prioritise these targets and to work towards drilling, particularly at Lulu Creek.

"This, together with the exciting Mt Marie lithium project where further rock chip samples again returned high assay results, places Artemis in an enviable position with two exploration pathways for in demand commodities."

At 1141 BST, shares in Artemis Resources were down 3.23% at 0.75p.

Reporting by Josh White for Sharecast.com.