Impact Minerals announces $1.9M rights issue

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has announced a raising of $1.9 million by way of a rights issue, which is being underwritten to the tune of $1.3 million by Patersons Securities Limited.

The company signalled the funds will enable it to continue exploration over all three of its Australian projects, which include the high-grade nickel-copper-platinum Broken Hill and gold-silver-zinc-lead Commonwealth projects in New South Wales and the nickel-copper-gold Mulga Tank project near Kalgoorlie in Western Australia.

The announcement follows on from Impact securing the backing of a major new cornerstone investor earlier this year in Squadron Resources.

Squadron Resources is a private mining investment vehicle of the Minderoo Group, which in turn represents selected philanthropic and commercial interests of Andrew and Nicola Forrest.

Squadron is investing an initial $3 million into Impact with provision to increase this to $7.3 million.

Tranche 1, an investment of $2 million, has already been received by Impact.

Tranche 2, a proposed $1 million placement to Squadron, is to be put to shareholders for approval at the company’s Annual General Meeting to be held towards the end of September.

Impact is offering its shareholders a 1-for-6 rights share issue at 2.1 cents per share the same price at which Squadron proposes to take up its placement shares.

“Impact’s recent discovery of Australia’s highest ever platinum grades at the company’s Red Hill prospect at the Broken Hill project has attracted attention,” Impact Minerals chairman Peter Unsworth wrote to company shareholders.

“The drill results include a 30 metre thick zone at 6 grams per tonne platinum equivalent that contains five to 10 metre thick zones at 15 grams per tonne platinum equivalent.

“A follow up drill program of about 1,500 metres to test a number of targets, will commence at the end of the rights issue and will also in part be funded by a co-fund grant of $78,000 for drilling from the New South Wales Government.”