Metals

Charger Metals (ASX:CHR) to raise $5.5m for exploration drilling – The Market Herald

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  • Charger Metals (CHR) is set to raise $5.5 million through a share placement to private investors
  • Under the placement, Charger will issue 11 million new shares at 50 cents per share, representing a 5 per cent discount to the company’s 15-day volume-weighted average price
  • The company says the funds will go towards exploration drilling to advance its Bynoe and Lake Johnston lithium and gold projects
  • Charger expects to issue the new shares on September 23, and they will begin trading on September 26
  • Charger Metals is down 9.09 per cent and trading at 58 cents at 11:44 am AEST

Charger Metals (CHR) is set to raise $5.5 million through a share placement to private investors.

Under the placement, the company will issue 11 million new shares at 50 cents per share, representing a 5 per cent discount to its 15-day volume-weighted average price.

Charger said the funds would go towards exploration activities in Western Australia and the Northern Territory, including drilling work to advance the Bynoe and Lake Johnston lithium and gold projects.

Prenzler Group acted as the lead manager of the placement and will receive a two per cent management fee and a four per cent selling fee on the gross proceeds of the placement.

Charger Managing Director David Crook said the company was pleased with the “strong level of demand” shown for its capital raising.

“The lithium market is currently strong, reflecting the improved understanding of the critical role lithium batteries are to play in the energy mix for a Net Zero Emission world,” Mr Crook said.

“Increasing demand for primary supply into the lithium market should continue to underpin projects, such as Charger’s Bynoe and Lake Johnson lithium projects, and the funds raised will allow us to aggressively drill both these highly prospective lithium projects.”     

The new shares are expected to be issued on September 23 and to begin trading on September 26, ranking equally with existing shares.

Charger Metals was down 9.09 per cent and trading at 58 cents at 11:44 am AEST.

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