IRIS Metals (ASX:IR1) has secured firm commitments for a share placement, raising $8 million before costs.
The placement involves issuing 32 million fully paid ordinary shares at 25 cents per share.
The capital injection is earmarked for the advancement of the company's lithium exploration and development initiatives in the Black Hills of South Dakota, USA.
The placement garnered interest from both existing and new shareholders.
A notable aspect of this investment is the participation of Nasdaq-listed Stardust Power (NASDAQ:SDST), which has committed $2.5 million and holds the option to invest an additional $2.5 million, contingent on particular conditions.
Commenting on the placement, IRIS Metals Chairman, Peter Marks, stated, "We are very pleased with the support shown for the capital raise and I thank many of our existing as well as new shareholders for their support. This new funding positions us to continue with our exploration, development and related activities at our properties in South Dakota."
The placement will be executed in two tranches, with the first tranche raising $7.6 million and the second, contingent on shareholder approval, focusing on participation from directors and Stardust Power.
CPS Capital has been appointed as the lead manager for the placement, securing a management fee for its involvement.
At the time of reporting, IRIS Metals' share price was $0.31.