Funds to underpin a significant ramp-up in exploration over the next six months, with initial drilling program at the Tambourah Lithium Project set to commence in June 2023.
Firm commitments received for a Share Placement to raise up to A$7.5 million at $0.06 per share with a free attaching 1:3 option at $0.085 with a 2-year expiry.
Placement was strongly supported by new and existing sophisticated investors, including members of the Board, with Trek Directors to participate in the placement for a total amount of approximately $500,000 (subject to shareholder approval).
Proceeds will increase Trek’s cash reserves to over A$9 million, putting it in a strong position to execute its growth strategy in 2023.
Funds will be used to accelerate exploration activity across Trek’s Pilbara exploration portfolio, including a maiden drilling campaign at the Tambourah Lithium Project which is expected to commence next month.
Major ramp-up in exploration programs scheduled over the next six months, paving the way for strong news flow over the remainder of FY2023.
Trek Metals Limited (ASX: TKM, Trek or the Company) is pleased to announce a strongly supported capital raising of up to A$7.5 million (before costs) to accelerate exploration across its lithium and manganese projects in the Pilbara region of Western Australia (Placement).
Commenting on the capital raising, Trek’s Chief Executive Officer Derek Marshall said: “This is a significant capital raising that will put Trek in a strong financial position as we embark on our maiden drilling program at the Tambourah Lithium Project and progress exploration programs across our other projects in the Pilbara.
Tambourah is a hugely exciting target that has all the right ingredients for a lithium discovery – including high-grade spodumene rock chip of up to 3.07% Li₂O as announced by the Company on 27 October 2022 and 7 November 2022 – and we are very much looking forward to getting on the ground to get our maiden drill program underway.
2023 is set to be an exciting year for Trek, with plenty of targets to test. We now have a strong balance sheet to support these programs and I would like to sincerely thank all our shareholders for their support.”