Northern extensional and regional target drilling is currently in progress at the KHLP. Credit: paleontologist natural via Shutterstock.com.

Australian Securities Exchange-listed company Future Battery Minerals (FBM) has secured firm commitments for a placement to raise A$6m ($3.8m) from its existing and new investors.

The capital injection will be facilitated through the issuance of 109,090,909 new fully paid ordinary shares at A$0.055 apiece.

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This issue price marks a 1.8% discount on FBM’s last traded share price of A$0.056 and an 11% discount to the 15-day volume weighted average price of A$0.062.

The funds from this capital raise are earmarked to complete the acquisition of the Miriam tenure.

Additionally, the capital will support aggressive exploration and development programmes at FBM’s wholly owned KHLP and the Miriam tenure.

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Northern extensional and regional target drilling is currently in progress at the KHLP.

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The completion of this placement is expected to leave FBM with a strong balance sheet, positioning the company to pursue further growth opportunities that add value.

FBM managing director Nicholas Rathjen said: “We are delighted with the high overall level of interest and strong demand received for this equity raising. This provides a strong validation of our existing portfolio strategy as well as the recently announced acquisition of the strategically located and highly prospective Miriam tenure.

“As part of the raising, we are pleased to welcome a number of new, high-quality institutional shareholders to our register. We are also greatly appreciative of the support received from existing institutional and sophisticated investors, including our major shareholder, Hancock Prospecting.

“We now look forward to rapidly pursuing further exploration across our KHLP and Miriam tenure. High-priority northern extensional and regional target drilling is currently in progress at the KHLP.”

Earlier this month, FBM announced the acquisition of an 85% stake in Coolgardie Nickel to consolidate its lithium assets.