Drilling scheduled to commence next month at Tanami Heavy REE Project

PVW Resources Limited (ASX: PVW) (PVW or the Company) is pleased to announce that it has successfully completed the landmark $9.5 million share placement (Placement) announced on 6 April 2022.


Highlights

  • $9.5M share placement (23.75M shares at $0.40 per share) to institutional and sophisticated investors now completed following the issue of the Tranche 2 shares.
  • This follows approval for both Tranche 1 (18,146,352 shares) and Tranche 2 (5,603,648 shares) received from shareholders at the General Meeting on 12 May. Tranche 1 was issued on 14 April.
  • The heavily oversubscribed placement was arranged and managed by CPS Capital Group Pty Ltd.
  • The successful capital raising increases PVW’s cash balance to over 10m, putting it in a strong position to progress the recently commenced exploration program at its Tanami Heavy Rare Earth and Gold Project in the NT.
  • Exploration programs are continuing with ground-based mapping and rock chip sampling in progress across multiple REE and gold targets.
  • Heritage surveys are now scheduled for late May, paving the way for commencement of the planned ~35,000m air-core/RC drilling campaign in June.

The Placement, which comprised 23.75 million shares at an issue price of $0.40 per share, was undertaken in two tranches because it exceeded the Company’s existing 25% placement company under Listing Rules 7.1 and 7.1A.

Tranche 1, comprising 18,146,352 shares, was completed on 14 May. Tranche 2, comprising 5,603,648 shares, was completed with all proceeds now received.

Approval for both Tranche 1 and Tranche 2 was received at the Company’s General Meeting held on 12 May 2022.

The Placement was arranged and managed by CPS Capital Group Pty Ltd.

Following completion of the Placement, PVW now has 96,335,413 shares on issue and cash of over $10 million, putting it in a strong position to advance exploration programs at its flagship Tanami Heavy Rare Earth and Gold Project in the Northern Territory.

The Company recently commenced exploration at the Tanami Project (see ASX announcement, 26 April 2022), with extensive ground-based activities continuing on site including mapping and surface rock chip sampling.

Exploration is continuing along the 18km unconformity target to extend areas of known heavy rare earth mineralisation.

Heritage approvals are now scheduled to commence in late May which will pave the way for commencement of the Company’s first-ever drilling program in the Tanami in June.

An initial program of ~10,000m of Reverse Circulation and ~25,000m of air-core drilling is planned, with the initial priority expected to be RC drilling at the Killi Killi East and Watts Rise prospects.

Management Comment

PVW Resources Executive Director George Bauk said: “The successful completion of this landmark placement marks a key milestone for PVW in our journey to unlock the potential of our exciting Tanami REE and Gold Project.

“I would like to take this opportunity to thank the investors who participated in the Placement and our supporting brokers CPS Capital Group. We are delighted to have a number of significant new institutional and strategic investors join our register and we thank existing shareholders for their support.

“With a strong cash balance, PVW is now very well placed to move ahead with the comprehensive exploration programs we already have underway at this highly prospective, yet under-explored region. Current ground exploration activities are progressing well, and we are all now looking forward to the imminent commencement of drilling, which we expect will occur in June following completion of heritage surveys.”

Click here for the full ASX Release

This article includes content from PVW Resources Limited (ASX: PVW), licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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