Gold Mountain completes $2.7m capital raising to advance high-priority targets

Gold Mountain (ASX: GMN) has received strong support for a $2.7 million capital raising to advance exploration at its high-priority rare earths, lithium and niobium targets in Brazil.

The single-tranche share placement will see the company issue approximately 729.7 million fully paid ordinary shares priced at $0.0037 each to institutional, professional and sophisticated investors.

This represents a 5.7% premium to Gold Mountain’s last closing price of $0.0035 on 31 July and a 6.6% premium to the 10-day volume-weighted average price of $0.0034.

New major shareholder

Investors were entitled to apply for one free attaching option for every two shares allocated, exercisable at $0.0055 each and expiring in 2027.

One investor subscribed for $2.3m under the placement, becoming the company’s newest major shareholder with the right to appoint an additional director to Gold Mountain’s board.

Canaccord Genuity (Australia) acted as lead manager for the raising.

Advancing targets

Executive director David Evans said the placement proceeds would be put towards advancing exploration at high-priority targets in Brazil’s highly prospective Jequié province, the emerging Lithium Valley and the Araxa region, as well as its tenement package in Papua New Guinea.

“We are very pleased with the strong support from new and existing shareholders, including our cornerstone investor who will emerge as the major shareholder of Gold Mountain,” he said.

“We are excited to accelerate exploration across our Brazilian tenement package and particularly look forward to mobilising an additional auger drill to the site at our rare earths targets, which have yielded impressive results from recent stream sediment sampling.”

Exploration focus

Mr Evans said the company was focused on exploring the province-scale Down Under and Ronaldinho project areas in Brazil’s Bahia state, as well as following up on a major review of historical data at the Wabag project in Papua New Guinea.

Down Under and Ronaldinho cover a combined 1,773 square kilometres containing strong thorium signals and ultra-high-grade hard rock monazite-hosted rare earths, niobium, uranium and scandium.

Exploration at Wabag will be managed by a porphyry and epithermal expert to ensure a rigorous approach to fieldwork activities.