Trek Metals (ASX:TKM) announced a heavily oversubscribed $15 million capital raising, signaling intense investor confidence in its high-grade Kuro manganese discovery.
The placement was met with such high demand from institutional and sophisticated investors that the company had to implement significant scale-backs.
The influx of capital, priced at $0.15 per share, introduces prominent Australian institutional players—including cornerstone investor Terra Capital—to the Trek register for the first time.
The funding is split into two tranches: a $13.55 million primary placement and an additional $1.45 million commitment from Trek's own directors, the latter of which remains subject to shareholder approval.
The proceeds are earmarked to underpin an aggressive exploration offensive at the 100%-owned Christmas Creek Project in Western Australia’s Kimberley region.
Management confirmed that a major drilling program, utilising both reverse circulation and diamond drilling rigs, is scheduled to commence this April.
The campaign aims to test the subsurface potential of the Kuro discovery, where recent rock chip samples have returned exceptional grades of up to 60.1% manganese.
By targeting interpreted geophysical and gravity features, Trek intends to prove the scale of the outcropping mineralisation discovered last year.
At the time of reporting, Trek Metals' share price was $0.20.