Polymetals Resources has secured firm commitments to raise A$35m in equity through a single tranche placement to support the restart of the Endeavor zinc-silver mine in New South Wales (NSW), Australia.
The company has issued 43.75 million shares at A$0.80 per share, attracting interest from both existing and new investors, including specialist resources investors.
The capital raised will be used for various purposes: A$15.5m towards strengthening the balance sheet; A$10m for boosting exploration activities; A$7.8m for covering corporate costs; and A$1.68m for placement expenses.
Polymetals executive chairman Dave Sproule said: “Our Endeavor restart activities remain on track and the Polymetals team look forward to commissioning the operation to become Australia’s next silver and zinc producer.
“Timing is particularly encouraging against the backdrop of strong A$ zinc and silver prices and the favourable treatment terms currently available to zinc concentrate producers. During the past two years, collation and validation of 50 years of exploration data has identified numerous and compelling near mine and regional exploration targets.
“As well as strengthening the Polymetals balance sheet, funds from this raising will allow us to significantly step up the company’s exploration activities and we look forward to updating the market on our exploration results.”
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By GlobalData
The production from the Endeavor mine is expected to begin in the second quarter of 2025 (Q2 2025). The company acquired the Endeavor mine from CBH Resources and its subsidiary companies, Endeavor Operations and Cobar Operations, in August 2024.
Polymetals will also launch a share purchase plan, allowing shareholders to buy new shares worth up to A$30,000 at the same price as the placement to raise up to A$3.2m.
Blue Ocean Equities and Ord Minnett are the joint lead managers for the placement, while Arlington Group Asset Management is the selling agent.
Sproule added: “With this equity raising achieved, we believe the Polymetals team is very well-positioned to begin the next chapter in ‘Making Endeavor Great Again’ with the establishment of strong and sustainable cash flow and providing a significant and lasting contribution to the community of Cobar and the mining industry in New South Wales.”
