Osmond Resources raises $3.8M for critical project
Key points
- Osmond Resources secured $3.8 million through a share placement to advance its Orión EU Project.
- The new shares were issued at $0.50 each, representing a 4% discount to the last traded price on Oct. 29.
- The company stated that the capital raising will help deliver the first rare earth, zirconium, and titanium mine in the European Union.
Osmond Resources (ASX:OSM) has received firm commitments to raise $3.8 million before costs to fund its Orión EU Critical Minerals Project.
The placement issue price of $0.50 per share represents a 4% discount to the company's last traded price on Oct. 29 and an 8.8% discount to its 10-day volume-weighted average price.
The transaction was led by the company and cornerstoned by an existing US-based institutional investor, with directors and management subscribing for $770,000 worth of shares subject to shareholder approval.
Following the capital raising, the business stated its pro forma cash position as of Oct. 31 is over $6.5 million, which includes a previously announced €250,000 Spanish government grant.
Osmond stated that settlement of the placement is expected on Nov. 9.
Following the announcement, the Osmond Resources share price was unchanged at $0.50.
The company recently received maximum grant funding from the Spanish government after declaring a maiden mineral resource estimate and completing a scoping study for the Orión Project in early October.
The Orión Project focuses on three critical minerals: monazite for rare earths, zircon for zirconium, and rutile and ilmenite for titanium.
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