Summit Minerals has completed a $2mn placement to existing and new domestic and international investors
Funds will be spent towards exploration activities at Equador and Juazerinho projects
A community engagement program at the Juazerinho niobium project to begin in June 2024
Special report: Summit Minerals has received overwhelming interest for a $2m placement that will help to fund an aggressive exploration campaign on its Brazilian niobium and rare earth projects.
In April, Summit Minerals (ASX:SUM) acquired a minerals rich 292.2km2 tenement package in South America prospective for lithium, niobium, and rare earths (REE).
After methodically scouring the world for projects, SUM landed in Brazil where the government recently started up a US$202.7m fund for critical minerals projects – a big sign of support for foreign investment into its mining sector.
SUM’s niobium and REE tenement packages consist of the Juazeirinho, Equador, Aratapira, Santa Sousa and T1/T2 projects, which cover a combined 107.47 km2 across 11 granted tenements. Also as part of the acquisition were the Hercules North and South Lithium projects in state of Minas Gerais, the Lithium capital of Brazil.
The Paraiba projects, including Equador and Juazeirinho, are situated in Borborema Pegmatitic Province (BPP) in northeast Brazil, one of the world’s most important sources of tantalum, REEs and beryllium, as well as producing significant quantities of gemstones.
Oversubscribed placement supports ambitious exploration efforts
SUM has now raised $2m in an oversubscribed placement to accelerate exploration activities at Equador and Juazerinho, which covers ground mined historically by near surface artisanal operators.
It is anticipated that a field exploration program at Juazerinho will begin in early June 2024, following completion of Phase 1 exploration program at Equador.
‘Exciting time’
The placement was completed at an offer price of $0.185 per share via the issue of ~10,810,811 shares, representing a 7.3% premium to the 15-day VWAP of $0.1715.
SUM now has a strong cash balance of ~$3.6mn to continue with aggressive and systematic exploration of its Brazilian niobium and REE portfolio and assess additional complimentary opportunities.
“The overwhelming interest we received for this placement demonstrates the market’s appreciation of our aggressive exploration approach,” SUM managing director Gower He says.
“Whilst we are still very much in the early stages of our niobium exploration program, we are very excited by what we have been seeing in the field.
“This is an exciting time for our company, and I look forward to keeping shareholders informed of our progress.”
This article was developed in collaboration with Summit Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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