Tungsten developer group 6 Metals, which is developing its own dolphin mine on Tasmania’s King Island, turned to brokers Friday morning to build working capital and help debt investors convert it into equity. Interested in raising $32 million in equity.
street talk. Louis Davis
The company’s three-part cash call was split into a $22 million offering, a conditional $5 million tranche to Executive Director Chris Ellis, and a $5 million stock purchase plan for individual shareholders.
All three legs are priced at 14 cents per share, representing a 15.2% discount from the Last Traded Price or a 17.9% discount from the 10-day volume-weighted average price. The offer included a 2-for-3 attach option with an exercise price of 21 cents and a June 2025 maturity.
According to a term sheet sent out to potential investors, Group 6 will use the proceeds to build working capital for its initial launch pending finalization of additional funding and a renewable It said it would pay Energy Push to fund a technical feasibility study for downstream processing of tungsten concentrate.
Investors were told that existing major investors, including Tasmanian billionaire Dale Elphinstone, Excel Cole co-founder Chris Ellis and European family office DACHS, backed the funding. rice field. Elphinstone, Ellis and Richard Chadwick pledged to underwrite $18 million, of which his $3 million was debt conversion. DACHS cost him $2.9 million.
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