GreenTech Metals (ASX: GRE) has received firm commitments from new and existing investors to raise $5.2 million for the acquisition of up to 80% equity in the Munni Munni platinum-palladium-copper-nickel project in Western Australia.
The placement across two tranches saw the issue of a total 95.2 million shares priced at $0.055 each, representing a 20.4% discount to the company’s 10-day volume weighted average price of $0.069.
It was strongly supported, with investor bids exceeding the original $4m target and satisfying a condition precedent for the acquisition.
GreenTech will use the proceeds for immediate work programs at Munni Munni, including a 20-hole drilling campaign to “twin” selected historical holes and enable a maiden mineral resource estimate in the new year.
80% Acquisition Agreement
GreenTech reached an agreement with Alien Metals earlier this week to acquire up to 80% of the Munni Munni project, located adjacent to its Whundo copper-gold deposit.
The project includes four mining leases and two exploration tenements, but excludes all silver rights held by West Coast Silver (ASX: WCE) and Alien.
GreenTech has also purchased two exploration tenements at Munni Munni South, boosting its total acreage to more than 500 square kilometres and giving it one of the largest landholdings in the West Pilbara.
Strengthening PGE prices have provided renewed interest in Munni Munni’s layered mafic intrusion, potentially enhancing project economics and providing a catalyst to re-evaluating the established mineral endowment.
Investor Endorsement
Non-executive chair Simon Kidston said the investor support was a clear endorsement of Munni Munni’s quality and potential.
“Securing a figure that was well above our initial target fulfils a key condition of the acquisition and positions us to commence value-accretive work programs,” he said.
“Growing global demand and tightening supply for platinum group elements adds to the strategic importance of this project, and we are delighted to welcome a number of new sophisticated and institutional investors to the register at this early stage.”
Management Appointments
Greentech has announced new board and management appointments to boost its in-house technical expertise and fast-track exploration at Munni Munni.
New non-executive director Stefan Murphy is a mining professional whose expertise in integrated mine-to-port logistics, project development, and bulk commodity marketing has been key to progressing large-scale resource projects nationwide.
Mr Murphy began his career as a mine geologist with BHP Group (ASX: BHP) in WA’s Pilbara region and has more than 20 years’ experience across exploration, mine development, operations, and corporate finance roles in Australia and the UK.
He is currently managing director of CZR Resources (ASX: CZR), where he led the development of the Robe Mesa iron ore project in WA which was ultimately sold to Rio Tinto (ASX: RIO) and the Robe River joint venture partners.
“Stefan’s deep knowledge of the Pilbara region and his proven track record in developing complex mining projects will be valuable as we advance Munni Munni and Whundo and evaluate pathways to unlock their significant value potential,” Mr Kidston said.
Technical Advisory Role
Australian exploration geologist Dr Kevin Frost will take on the role of GreenTech technical advisor (geology), building on a 25-year career history in the discovery and evaluation of base and precious metal deposits.
Dr Frost – a well-regarded discovery specialist with a track record in identifying Tier 1 mineral deposits – is a dual recipient of the AMEC Prospector Award for his role in the Gonneville and Spotted Quoll discoveries.
He was a key member of the team responsible for the discovery of the Flying Fox nickel deposits in WA’s Forrestania greenstone belt, further cementing his reputation for unravelling structurally-complex, high-grade mineralised systems in Archean settings.
“Kevin has a working knowledge of the Munni Munni complex in the context of regional structural architecture and PGE-nickel exploration, gained from his extensive work across the Yilgarn and Pilbara,” Mr Kidston said.
“His appointment will add significant technical strength to GreenTech as we advance exploration and development across Munni Munni and the surrounding tenure.”
