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The hunt for rare earths in the NT

rare earths, northern territory

WA1 Resources has tapped shareholders for a $15 million placement to fund rare earths, copper and gold exploration at its West Arunta project in the NT. 

WA1 Resources said that the funds raised from the placement will primarily be applied towards ongoing exploration activities and development studies at the West Arunta project in Western Australia, along with administration and corporate costs and general working capital.

The West Arunta project is located approximately 700km west northwest of Alice Springs.

WA1 conducted a maiden drill program at the P2 target (at West Arunta) late last year, stumbling upon a niobium-rare earths system within the very first hole drilled.

Following the discovery of the niobium-rare earths mineralised carbonatite system, WA1 share price leapt from $0.14 per share to the $2.00 margin. WA1 is trading just shy of the $6.00 mark today.

West Arunta is also considered prospective for gold and copper.

“Development activities are also gathering momentum with initial sighter test work ongoing before upcoming metallurgical programs commence,” WA1 Resources’ managing director Paul Savich said.

“Our team has also continued to grow to support a number of development activities in line with our long-term, structured approach to fast-tracking project development aspects, and this additional funding enhances our ability to do so.”

Cash injection

The placement price of $5.00 per share represents a five per cent discount to the ten-day volume-weighted average price of WA1 shares. It will result in the issue of three million new WA1 shares in two tranches and WA1 having around 56.7 million shares on issue.

Tranche 1 will be issued in accordance with WA1 Resources’ existing placement capacity, raising $12.8 million before costs, resulting in the issue of about 2.6 million new shares.

Tranche 2 is subject to WA1 shareholder approval. It will raise an additional $2.2 million before costs from the issue of 0.4 million new shares. The company will convene a general meeting to have Tranche 2 of the placement approved, which is expected to be held in early October.

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