Tambourah Metals’ raise oversubscribed on back of positive lithium results, SPP to follow

Just 10 days after announcing that rock chip sampling at the Russian Jack project in the Pilbara had resulted in encouraging assays, Tambourah Metals (ASX: TMB) has got away a $2.5 million placement.

The company said it received strong support from sophisticated and professional investors, with demand exceeding the number of new shares available.

A non-underwritten share purchase plan will target a further $1.2 million with existing shareholders offered stock at the same price, $0.235 per share.

One assay at Russian Jack showed a grade of 1% lithium oxide. This find occurred 1km from the previously reported lithium-bearing pegmatites at the Russian Jack Northwest target.

Proceeds to finance drilling, target generation

Tambourah stated that the money raised through the placement and the SPP will be used for drilling at the Tambourah project, delineating additional targets at Russian Jack and maiden drilling at the recently acquired Shaw River prospect.

In late July the company said it was stepping up exploration for lithium-caesium-tantalum (LCT) pegmatites at its newly acquired prospects, including at Haystack Well which was one of six prospects bought last month from Minex Resources (ASX: MRR).

The Russian Jack project is located 295km southeast of Port Hedland and comprises five exploration licences and three applications.

Well placed to finance exploration

Executive chair Rita Brooks said the capital raising positions Tambourah well for its upcoming work program.

Tambourah recently entered a collaboration partnership with the CSIRO to apply their hyperspectral dataset to define first-pass exploration targets across the Russian Jack project.

The partnership with CSIRO will assist identifying priority areas to investigate.

The company is now planning heritage surveys and is working with the Palyku people — one of the first nations of the Pilbara region — to clear priority areas.

The company will conduct reconnaissance and heritage clearing using helicopters where surface access is limited

SPP will have flexible target

The shareholder purchase plan, because it is not underwritten, will allow the company to raise more or less than the $1.2 million target, and the directors have the flexibility to accept more than the specified amount.

The SPP opens on August 8 and is expected to close on August 21.

Subscribers will also receive a free attaching option for each share, exercisable at $0.30.