Big CR coming.....!, page-23

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Tungsten developer Group 6 Metals, which is chipping away at its Dolphin mine in Tasmania’s King Island, had its brokers drumming up interest in a $32 million equity raising on Friday morning to stock up on working capital and to help debt investors convert to equity.

Street Talk. Louie Douvis

The company’s three-part cash call was split into a $22 million placement, a $5 million conditional tranche to its executive director Chris Ellis, and a $5 million share purchase plan for retail shareholders.

All three legs would be priced at 14¢ a share, a 15.2 per cent discount to the last traded price or a 17.9 per cent discount to the 10-day volume weighted average price. The offer included an attaching option on a two-for-three basis at a 21¢ strike price and June 2025 expiry.

Term sheets sent to potential investors said Group 6 would use the proceeds to stock up on working capital for initial ramp-up while it finalised additional funding, to pay for its renewable energy push and to fund technical feasibility studies for its tungsten concentrate’s downstream processing.

Investors were told existing major investors including Tasmanian billionaire Dale Elphinstone, Excel Coal co-founder Chris Ellis and European family office DACHS supported the raise. Elphinstone, Ellis and Richard Chadwick had committed to take up $18 million of which $3 million was debt conversion. DACHS would take up $2.9 million.

Canaccord Genuity and Ord Minnett were calling for bids by 3pm on Friday. Group 6 Metals was expected to have a $139.1 million market capitalisation after the raise.

The company last raised at 17¢ a share in

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