ASX-listed mining and exploration company Metal Hawk has secured firm commitments to raise $2.3m (A$3.5m) through a placement to support its Yarmany lithium and nickel project in Western Australia (WA).

The move was supported by the company’s existing shareholders and directors.

Bell Potter Securities is the lead manager for the placement.

As part of the placement to institutional, strategic and sophisticated investors, 19.4 million shares will be issued, each priced at A$0.18.

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By GlobalData

Of the total number of shares, 19.18 million will be issued unconditionally. These shares are slated for allotment on 4 December 2023.

The directors of the company have agreed to subscribe to another 255,556 shares. Subject to shareholder approval, each director will be allocated an equal number of shares in the coming months.  

Metal Hawk managing director Will Belbin said: “We are very pleased with the strong level of support from new and existing shareholders. We are leading into a very exciting period of exploration activity at Yarmany, and the Metal Hawk team is keen to advance drilling at F Camp and other prospects.”

The company plans to use the proceeds from the placement towards lithium and nickel sulphide exploration activities at the Yarmany project, located north-west of Coolgardie in Eastern Goldfields, WA.

Of the funds received, A$0.50m will be earmarked for aircore drilling, A$1.50m for RC drilling, A$0.12m for geophysics, A$0.15m for auger/geochemistry, and A$0.08m for native title/heritage surveys.

The remaining amount of $1.15m will be allocated to general working capital purposes.

Occupying 282km², the project has a strike potential of 50km along the Ida Fault with a prospective for both nickel sulphide and lithium mineralisation.

In July 2023, Metal Hawk entered an option deal to acquire the Yarmany project from Black Mountain Gold, a subsidiary of Horizon Minerals.

The majority of historical drilling at the project was limited to regional gold exploration. After securing tenements, Horizon Minerals had conducted 2,617m of aircore and 1,550m of reverse circulation drilling across the project.

After taking control of the project, Metal Hawk claims to have undertaken several early-stage works such as mapping, rockchip sampling, geophysics and aircore drilling.