It has secured commitments for a A$27 million placement and an underwriting agreement for a minimum $3 million in a share purchase plan that is seeking up to $5 million. 

 

The placement includes $3 million of debt provided by key shareholders Chris Ellis, Richard Chadwick and Dale Elphinstone since March to be converted into shares.

 

Both raisings were priced at a 14c, a 15% discount.

 

It last raised $4.5 million in an expanded placement at 17c in February.

 

The lion's share, $21 million, of the latest placement comes from its four largest shareholders. 

 

Directors Keith McKnight, Johann Jacobs and Ellis will seek approval to invest also.

 

The capital injection comes as G6M is set to take control of the new plant, and start processing stockpiled ore, while pre-stripping at the pit is underway with the first blast set down for early June.

 

McKnight, G6M's managing director, said the equity injection would allow a robust balance sheet as the Dolphin mine ramps back up, and examine opportunities to optimise the mine and plant, and fund cost escalation issues.

 

Some 60% of production for the first four years is being sold under offtake with Traxys and Sandvik.

 

The company continues to see positive market fundamentals for tungsten, with increasing demand and limited new supply.

 

Canaccord Genuity and Ord Minnett acted as joint lead managers to the raising.

 

The company had $3.2 million cash at the end of March, and undrawn facilities of $5 million.

 

The company was valued at $132 million based on its last price of 17c.

 

It has traded at 16-28c over the past year.