iTech Minerals raises $2.8m to advance Reynolds Range and Eyre Peninsula projects

iTech Minerals (ASX: ITM) has received firm commitments to raise $2.8 million for copper-gold-silver exploration at its Reynolds Range project in the Northern Territory and the development of its advanced Eyre Peninsula graphite project in South Australia.

The raising will take the form of a $1.8m share placement and a $1m share purchase plan (SPP) for existing eligible shareholders.

The placement will involve the issuance of 25.4 million new shares priced at $0.071 each, representing a 29% discount to the last closing price of $0.10 and a 19.9% discount to the five-day volume-weighted average price of $0.089, while the SPP will be conducted at the same issue price and give shareholders the opportunity to increase their stake by up to $30,000 without incurring any brokerage or transaction costs.

Exploration plans

Proceeds from the raising will be combined with cash reserves of $2.7m to fund iTech’s exploration plans.

These include diamond drilling for copper-gold-silver and lithium mineralisation at Reynolds Range prospects including Scimitar, metallurgical work at the Lacroma and Sugarloaf graphite targets and a graphite pilot plant scoping study.

iTech obtained gold assays of up to 182 grams per tonne earlier this month from rock chip sampling at Reynolds Range, which spans over 375 square kilometres in the Aileron Province.

This “bonanza” result came after the company fast-tracked assays to gain an early indication of the project’s gold potential following a recent sampling program.

Advancing work

Managing director Mike Schwarz said that the raising would provide the company with the funds needed to advance work at its projects.

“Reynolds Range is producing some exciting early results and we are keen to continue our exploration,” he said.

“The Scimitar prospect has been identified as a short-term drill target with an exciting electromagnetic conductivity target beneath outcropping copper-gold and silver mineralisation and we are due to drill test that in the coming months.”

Lead manager

iTech appointed Foster Stockbroking as the lead manager and bookrunner for the placement.

Foster will receive a 2% management fee and a 4% selling fee, as well as 2.76 million unquoted options with an exercise price of $0.12 that expire in August 2026.

The issuance of options is subject to shareholder approval at a meeting planned for next month.